Bitcoin Faces Critical Resistance as Fed Rate Decision Looms Large
Last week, Bitcoin initiated a test of the $25,700 support level. During this time, investor interest remained robust, although there was a perceptible shift in sentiment away from this critical support threshold as the week unfolded.
In the current week, our focus is squarely on the forthcoming interest rate decision from the Federal Reserve. The Bitcoin market has kicked off this pivotal week with a somewhat optimistic tone, notably with the $26,500 mark, which had previously acted as an intermediate resistance point over the past month, now beginning to establish itself as a support level.
The prevailing momentum may propel Bitcoin towards the $27,200 to $27,700 range, which corresponds to the 50 and 200-day moving averages, during the course of this week. This particular zone warrants vigilant observation as it stands as a pivotal juncture influencing Bitcoin's potential new trajectory.
Conversely, it's worth noting that last week witnessed the occurrence of the so-called «Death Cross» in Bitcoin's trading, with the 50-day moving average dropping below the 200-day moving average. Initially, this bearish signal prompted buying activity. Nevertheless, the bearish outlook is expected to persist as long as Bitcoin remains beneath the resistance region around $27,000.
If we rewind the clock a bit further, we can observe that following the decline in January 2022, coinciding with the last occurrence of the «Death Cross,» a similar buying reaction materialized towards the 200-day moving average.
Come March 2022, Bitcoin had managed to recover to the $48,200 level, aligning with the 200-day moving average. However, it proved unable to surpass this threshold and instead entered a persistent downtrend that endured throughout
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