Thursday, 28 September 2023

Crypto News

FOMC versus BTC price ‘local bottom’ — 5 things to know in Bitcoin this week

FOMC versus BTC price 'local bottom' — 5 things to know in Bitcoin this week

Bitcoin (BTC) starts the new week with optimism as traders greet the first green weekly candle in over a month.

BTC price strength appears to be gradually improving after a weak August and start of September, with BTC/USD climbing toward $27,000.

A solid weekly close provides the backdrop to what promises to be an interesting few days, which will include a key United States macroeconomic event as a potential volatility driver.

The Federal Reserve will meet to decide on interest rate policy — and any surprises could have significant repercussions for risk assets, including crypto.

Elsewhere, things are looking promising for Bitcoin, with network fundamentals set to surge higher to new records.

Strength “under the hood” is similarly being reflected in hodler behavior, with wallet numbers continuing to shoot higher regardless of BTC price action.

Cointelegraph takes a look at these topics and more as Bitcoin begins what is likely its most eagerly-awaited week of September.

Trader eyes BTC price “local bottom”

Bitcoin offered little volatility over the weekend, but calmer trading conditions are already being challenged into the new week, data from Cointelegraph Markets Pro and TradingView shows.

The Sep. 17 weekly close soon gave way to upside volatility, and at the time of writing, bulls are attempting to build on that foundation to crack new month-to-date highs.

BTC/USD 1-hour chart. Source: TradingView

Popular trader Credible Crypto thus suggested that the weekend zone could well form a “local bottom.”

“This region continues to be defended, with buyers stepping in here once again. Has the makings of a local bottom/base being formed imo,” he told X subscribers overnight, alongside a chart of order book liquidity on largest global exchange Binance.

“I think we probs push back up to 27k+ soon.”

BTC/USD order book data for Binance annotated chart. Source: Credible Crypto/X

A prior post noted the lack of promise in shorting at weekend levels, with bid liquidity improving.

The weekly close meanwhile excited Michaël van de Poppe, founder and CEO of trading firm Eight, who saw key support holding at the 200-week exponential moving average (EMA).

“Bitcoin is closing above the 200-Week EMA, which is vital for bullish continuation,” he explained.

“Next week we should continue to do so and price starts to look similar to the 2015/2016 cycle.”

Van de Poppe uploaded a chart showing the interplay between spot price and the 200-week EMA, currently at $25,700,…

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