While the Fed's interest rate decision is expected today in Bitcoin and altcoins, the expectation in general is that an increase of 25 basis points will be made.
While the statements in the FED's interest rate decision text will be decisive for risky assets such as BTC, some analysts evaluated possible scenarios for Bitcoin after the interest rate decision.
According to the news of Coindesk, Fairlead Strategies founder and managing partner Katie Stockton said that a break below the 50-day simple moving average (SMA) will bring the $ 25,200 levels back to the agenda for BTC.
In a note to customers, Stockton said:
“A break below the 50-day SMA (around $29,000) and a two-day close could bring the downside risk back to $25,200 for Bitcoin.
A break below this level could shift the focus to the long-term support at $25,200, with deeper losses possible for BTC.”
Apart from Stockton, Alex Kuptsikevich, senior market analyst at FxPro, also shared his views on Bitcoin.
Noting that the market seems to have found a balance before the interest rate decisions of major central banks such as the FED, Kuptsikevich warned that deeper downside risks continue.
“The market has found its temporary balance as we wait for the decisions to be taken by the three major central banks (FED, ECB and Bank of Japan) this weekend.
Rate decisions and comments will likely determine the trend in the market in the coming weeks.
If the bear pressure intensifies, i.e. if Bitcoin breaks below the 50-day SMA, the next important level of support will be $27,000, the lower border of the ascending channel from the November lows and the 200-week moving average.”
*Not investment advice.