Price Cooling Masks Bullish Waves; Will Bitcoin reach $56k or will it rise to $63k?

Bitcoin is currently flashing a new bullish signal, but a short-term price freeze is underway. This comes when the asset pulls back from overbought levels, indicating the possibility of a correction. However, the biggest focus for the market at the moment is the upcoming Fed meeting, which may have an impact on the cryptocurrency market.

A pullback isn't necessarily a bad thing, according to CryptoWorld analyst Josh. Overbought levels often indicate that the asset is due for a minor pullback before it recovers. In Bitcoin's case, this cooling process could set the stage for a more sustained rally.

What to expect moving forward

Bitcoin's short-term charts show that the asset is holding a neutral position, oscillating between key support and resistance levels. A break above $61,000 could lead to a test of the $63,000 level, while a break below $56,000 would indicate more bearish activity. All eyes are now on the Fed's decisions and its ability to steer the market.

The decision of the federation seems great

With the Federal Open Market Committee (FOMC) meeting just two days away, the market is on edge. The decision on interest rates is expected to be announced on September 18, and this could cause volatility in both traditional and crypto markets. The futures market is currently trading at a 67% chance of a 50 basis point cut and a 33% chance of a 25 basis point cut.

Given the uncertainty surrounding the Fed's decision, Bitcoin may trade in a more neutral range until the outcome becomes clear. However, once the decision is made, traders need to watch for volatility. If the Fed offers a 50 basis point reduction, Bitcoin could see an upward movement as the market adjusts to more favorable conditions. On the other hand, a 25 basis point cut may cause a short-term bearish reaction.