The recent Federal Open Market Committee (FOMC) commentary triggered a 3% dip in Bitcoin's price as policymakers emphasized the need for extended restrictive measures to manage inflation. The focus is on maintaining a delicate balance between tightening and inflation targets.
In today's trading, US annual inflation is expected to dip slightly to 3.6%, with core annual inflation dropping to 4.1%. The concern is whether inflation will persist above the 2% target.
While current metrics may not provide clear insights, market observers are watching the bond market's reactions closely. Bitcoin's trajectory is tied to these evolving dynamics.
Bitcoin is currently trading at $26,800, with a 1% decline in the last 24 hours, maintaining dominance in the crypto market. Its market cap is about $523.28 billion, with a circulating supply nearing its maximum limit at 21,000,000 BTC.
The 4-hour chart shows key price levels. Resistance points are at $28,020, $29,032, and $30,565. Support is at $25,474, $23,941, and $22,929. Technical indicators like RSI and the 50-day EMA suggest a bearish sentiment. The recent break below an upward channel at $27,350 and the bearish 50 EMA crossover indicate a bearish trend. Traders are advised to remain cautious in this bearish Bitcoin market.
In summary, the FOMC's commentary and US inflation dynamics have impacted Bitcoin's price, and the current trend suggests caution and vigilance for potential breakouts in either direction.