Bitcoin price breaks below the key 50 moving average ahead of the US Federal Reserve monetary policy meeting risking a fall to $26k. The Fed is expected to deliver another 25 bps rate hike and markets await whether Fed Chair Jerome Powell is hawkish or dovish amid the banking crisis and debt ceiling crisis risking an economic catastrophe.
Ethereum price and altcoins will follow suit, bringing an overall crypto market correction amid the looming Fed interest rate decision. Also, there’s no support from whales as they are continuously selling.
The market will remain under selling pressure and volatile for several days from the monthly expiry on April 28 to the U.S federal Reserve rate hike monetary policy decision on May 3.
In the daily timeframe, BTC’s price broke below the key 50-MA level at $28.2k after failing to hold above the 20-MA at $29k. BTC price fell to a 24-hour low of $27,680 after breaking the key level. The price is currently trading at $28,011, down 2% in the last 24 hours.
Bitcoin trading volume continues to decline as the US Dollar index (DXY) rises above 102 on strong US data and expectations of another 25 bps rate hike by the US Fed.
Meanwhile, US 10-year Treasury yields rose to the 3.55% level amid high inflation and eased concerns over turmoil in the banking sector.