Bitcoin price fell over 4% to $23,902 after facing rejection from the $25,100 level, the crucial 200-WMA, on Tuesday. The BTC price is currently trading near the $24,100 level as traders await the FOMC Minutes revealing the U.S. Federal Reserve’s monetary policy outlook.
Ethereum price also plummeted by over 4% from $1,714 to a low of $1,628. The ETH price currently trades at $1,645. Other altcoins followed suit and fell, causing the total crypto market cap to fall by 2%.
Stock futures contracts tied to the three major indices Dow Jones Industrial Average, S&P 500, and NASDAQ are trading flat. The U.S. stock indices fell over 2% on Tuesday in anticipation of hawkish Fed sentiment. Traders expect Federal Reserve will tackle hotter-than-expected inflation by increasing interest rates
On the macro front, 10-year treasury yield and 2-year treasury yield have dropped slightly, and oil prices have also fallen after a rise this week.
The U.S. Dollar Index (DXY) moving near the 104 level after holding above the 104 for almost a week. However, the DXY will remain volatile until the FOMC Minutes release.
With market sentiment highly bullish and China reportedly backing Hong Kong to become a crypto hub and several crypto exchanges planning to expand to Hong Kong, BTC prices are expected to rally higher.
However, a strong resistance at 200-WMA is not easy to cross under present conditions, especially due to the current crypto regulatory crackdown in the U.S
In the daily timeframe, RSI falling to nearly 58 shows the price trend is already weak, while Bollinger Bands and other indications depicts a possibility of a fall to $21.7K. But for that, Bitcoin price needs to break the $23.2K support level. Hawkish FOMC Minutes could cause Bitcoin price to fall to near support.
Popular crypto analyst Michael van de Poppe says the market is correcting as U.S. indices are also correcting. “It means, opportunities! I think I’ll be waiting for a bit lower on Bitcoin to get triggered for a long position.”
Ethereum on the other hand is subject to less volatility amid the anticipated launch of Shanghai upgrade and a rise in Ethereum staking amid testnets upgrade and mainnet upgrade.