John Isige
Bitcoin price forecast: A new sell-off trend is gaining momentum in the cryptocurrency market ahead of June’s Federal Open Market Committee (FOMC). After losing support at $70,000 last weekend and $68,000 on Tuesday, Bitcoin price signals an extended trend to support highlighted at $66,000.
Meanwhile, this is an important week for investors in both the equities and crypto markets. In addition to the FOMC meeting expected to commence during US business hours on Tuesday, the Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) on Wednesday.
Bitcoin is not the only digital asset in the red, major altcoins are also bearing the brunt of increasing volatility. Ethereum is down nearly 4% in 24 hours and 6.5% in seven days, hovering at $3,530 at the time of writing.
Binance Coin (BNB) seeks support at $600 after exploding above $700 last week. Solana appears to be seeking support at $150 after abandoning the uptrend which previously targeted $200.
Cumulatively, the total crypto market cap has lost over 3% of its value to $2.58 trillion. The Bitcoin dominance remains high at 51.2%, with Ethereum coming second at 16.5% based on CoinGecko data.
Crypto Market Awaits Fed’s Outlook On Interest Rate Cuts
The Federal Reserve will kick off the two-day FOMC meeting on Tuesday, which will culminate with a speech by Jerome Powell, the central bank’s chair.
This month’s meeting is not expected to result in a change in interest rates. However, market watchers anticipate a clear sense of direction from the Fed, especially on the first rate cut.
With the CPI report coming out on Wednesday, the data will show if inflation continues to ease. Economists project inflation at 3.4% to match April’s 3.4%.
The Fed has a long way to go to achieve the target of 2% inflation. Rates cuts are likely to wait longer with experts projecting the first cut in September.
On the other hand, the crypto market and other volatile markets are likely to keep suffering with investors likely to shun them in favor of more stable investments like bonds and treasury bills.
A positive CPI report could reignite interest in the crypto market, allowing Bitcoin to reshape the uptrend above $70,000.
Bitcoin Price Forecast: What To Expect Ahead Of FOMC Decision
Bitcoin hovered below several key indicators and levels on Tuesday including the broken ascending trend line support, and the Exponential Moving Averages (EMAs) like the 20-day EMA, the 50-day EMA, and the 200-day EMA.
The Relative Strength Index (RSI) position in the oversold region at 24 shows a strong bearish grip. However, this can signal an incoming trend reversal. As the RSI begins to rebound, traders may want to catch the bullish trend early by placing buy orders near the bottom of the short-term downtrend.
Although the path of least resistance holds downwards, Bitcoin backs the bullish outlook, holding onto support at $67,000. The climb above $70,000 would signal the return of the bulls but for BTC to ignite FOMO among investors, it will have to break the red band resistance shown on the chart at $72,000.
Failure to uphold support at $67,000 may result in more declines below $66,000. In such a scenario, Bitcoin price prediction reveals that $64,000 is not out of reach.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
