Bitcoin price was hovering below the important zone of $30,000 on Monday ahead of the Fed’s two-day monetary policy meeting set to start on Tuesday. At the time of writing, the digital currency was trading more than 3% lower at $29,098.53. Bitcoin, the largest cryptocurrency by market cap, is down by nearly 6% in the month to date. The asset’s total market cap has pulled back further to $565 billion, while the total volume of BTC traded continues to skyrocket.
Economic Jitters
Bitcoin price has been on a decline for the past few days, weakening the crypto market sentiment as investors shift their focus to the US Federal Reserve’s monetary policy meeting. The global crypto market cap has crashed by 2.54% over the last day to $1.17 trillion, while the total crypto market volume increased by 63% over the same period.
The Crypto Fear and Greed Index, which is the key measure of the emotions driving the crypto market, has slipped over the past few days. The Index has declined to a neutral level of 56, signaling a decline in confidence among investors.
Investors have entered conservation mode ahead of the US central bank’s two-day meeting starting Tuesday. The Federal Reserve policymakers are expected to announce their decision at the end of the meeting on Wednesday. Guidance issued alongside the interest rate decision, as well as comments by the central bank’s chair, Jerome Powell after the meeting, will be key for investors who are hunting for clues about what is next for monetary policy.
Additionally, the CB Consumer Confidence Index data for July will be published on Tuesday as analysts expect an increase from 109.7 to 111.5. Several key data points are also due this week, including the Fed’s favorite inflation gauge, the personal consumption expenditures (PCE) index on Friday. Notably, the European Central Bank is expected to announce its interest rate decision by Thursday.
Bitcoin Price Technical Analysis
The daily chart shows that the Bitcoin price has failed to hold above the crucial level of $30,000, dipping to its lowest in a month. The digital currency is currently moving slightly below and above the 50-day and 200-day exponential moving averages, respectively. Its Relative Strength Index has moved below the signal line and the neutral zone. The Bollinger bands have narrowed as indicated on the chart, pointing to a slump in liquidity.
Therefore, I expect the Bitcoin price to continue falling in the ensuing sessions as the bears target the next support level at $28,465. Conversely, a move above the important hurdle at $30,000 might push the price higher to $31,000, invalidating the bearish thesis.
