Bitcoin traders see $63K sweep with FOMC, BTC price closes next month
Bitcoin (BTC) saw volatility on Wall Street on July 31 as markets braced for US macro events and closed the month.
Bitcoin ahead of Fed's Powell
Data from Cointelegraph Markets Pro and TradingView showed a daily high of $66,814 on Bitstamp ahead of the Federal Reserve's decision on interest rate changes.
Markets don't expect the Federal Open Market Committee (FOMC) to change rates until September, data from CME Group's FedWatch Tool confirms, but on traders' radar is a comment from Fed Chairman Jerome Powell.
“We expect volatility to increase ahead of tonight's FOMC. We do not expect to have a significant impact on the statement and Powell's press,” wrote trading firm QCP Capital in a recent announcement to Telegram channel subscribers.
“Our base case is to cut 1 each in September and December. We are now wary of a deviation from expectations, which would trigger risk-off activities across all assets, including crypto. Such a scenario would reflect the Federal Reserve's view of significant economic challenges.”
Other macro data on the day emphasized the possibility of that scenario playing out. In Europe, Eurozone inflation rose to 2.6%, above expectations of 2.5%.
“Core inflation in Europe reached 2.9%, higher than expectations of 2.8%,” marketing resource Kobeisi wrote in part in a response to the letter on X.
“Inflation is on the rise in Europe.”
As Cointelegraph reports, major tech stocks continue to come under pressure after a week of earnings reports failed to lift sentiment.
Average BTC price will be support.
Turning to Bitcoin itself, Keith Allan, founder of trading resources Material Indicators, was firmly in “wait and see” mode ahead of the Fed and the monthly candlestick.
Related: BTC Price Lower Highs Control Bitcoin Bears At $70K
“Regardless of the situation, it's safe to say that we have a recipe for volatility on the close/open side of the monthly candle.
Allen highlighted the 21-week simple moving average (SMA) at $65,700 as a key level to hold in the low-side volatility scenario.
“Losing the 21-week MA opens the door for some CME gaps to fill, but we currently have some bid support in the $63k -65k range,” he wrote, referring to the “gaps” between the open and close. Prices on the CME Group Bitcoin Futures Market.
“Needless to say, the market is waiting for Powell to drop some clues and the monthly close.”
Data from CoinGlass monitoring shows that the liquidity of the order book is increasing at around $65,500.
“I was expecting a bit more bitcoin yesterday, but ultimately I'm still looking for a low of the 63k range to sweep,” continued prominent trader Mark Cullen, hoping for a loss of liquidity in key long BTC. Cluster
“BTC is currently sitting in the middle of the range, but I expect more volatility today with the FOMC rate decision coming up.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
