While the news of lawsuits from the USA lowered the risk appetite in Bitcoin and altcoins, the weekly close tonight made some investors nervous.
With the weekly close yesterday, Bitcoin once again fell below its 200-week average price after March 2023.
The 200-week average is followed closely by many investors as it performs well in marking the bottom of bear markets in Bitcoin.
We know that the purchases made around the 200-week average price level are beneficial for the investors in the medium and long term, but this does not mean that the prices will not decrease further in the short term.
A critical interest rate decision is expected from the FED this week. Expectations are that the FED will keep the interest rates constant and stop the rate hikes. When entering such a week, the price going down below the 200-week average may be an opportunity for new entrants, considering that fear is also dominant in the market.
When we examine the previous price movements, we observe that the BTC price does not stay below the 200-week average price level for a long time. The only exception was in 2022 (LUNA, FTX and other bankruptcies).
This week will be a high volatility week for Bitcoin and altcoin investors. Both the price's falling below the major support and the FED's critical interest rate decision will be factors that will feed this volatility.
Currently, the 20-week average ($26307) and the 200-week average ($26516) will be followed as resistance and $22382 as support in Bitcoin.
At this point, the possibility that the market maker may have used the fear on investors and reduced the price below this critical level in order to accumulate more shorts before the rise should not be ignored.
Opportunities in the market are endless. If you are having a hard time deciding among such uncertainties, it may be the right choice for you to see the FED's interest rate decision and the weekly closing for the next week.
