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Selling Pressure Threatens Bitcoin Support Levels Following FOMC Meeting

Published 06/07/2023, 17:22
Updated 06/07/2023, 17:45
© Reuters.  Selling Pressure Threatens Bitcoin Support Levels Following FOMC Meeting

  • BTC sees selling pressure following the release of FOMC meeting minutes.
  • A popular data platform predicts a 2.01% rise in Bitcoin price, indicating a buying opportunity.
  • Technical indicators suggest BTC’s short-term SMA will hit reach $31k by August.

Bitcoin has encountered an unexpected surge in selling pressure following the latest release of the United States Federal Open Market Committee (FOMC) meeting minutes. While most officials agreed to maintain the current interest rates, a few suggested a slight increase of 25 basis points. Looking ahead to 2023, most of the committee expects further rate hikes.

As a result, Bitcoin’s price has dropped from its June high of $31,400 to about $30,700. This downward pressure extends beyond BTC as the global crypto market valuation similarly dipped, shedding over $100 billion from $1.23 trillion.

Despite the minor decline, Bitcoin’s price is still above the immediate support level of $30,533, with a stronger support level anticipated at $ 29,546, according to a recent estimate from a prominent data analytic firm, CoinCodex.

However, the analytics platform’s Bitcoin price prediction suggests a 2.01% rise to $31,096 by July 11, 2023, indicating a good time to buy. Yet, the current sentiment is influenced by bearish indicators.

Bitcoin’s current trading position is above the 200-day simple moving average (SMA), which has signaled a buy for the last 173 days. The coin is also above the 50-day SMA, signaling a buy for the past 16 days. CoinCodex’s technical indicators also suggest that Bitcoin’s short-term 50-day SMA is estimated to reach $31,298 by August 4, 2023.

In June, BTC surged and reclaimed resistance at $31,000, driven by numerous filings for spot Bitcoin exchange-traded funds (ETFs) from various companies, such as BlackRock, as Coin Edition reported.

The post Selling Pressure Threatens Bitcoin Support Levels Following FOMC Meeting appeared first on Coin Edition.

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