United States equities and cryptocurrency markets are heading into the Federal Reserve’s interest rate decision on July 27 on a positive note. This suggests that the market participants believe the Fed will deliver a 75 basis point rate hike, which is in line with market expectations.
Some economists expect the Fed to calm the markets by indicating less aggressive rate hikes in the future. Trading firm QCP Capital said that the market reaction has been positive to all the Federal Open Market Committee meetings this year and they expect the same with the latest one as well.
Analysts are divided on the next directional move for Bitcoin (BTC). After the event has passed, some expect Bitcoin to turn down from the current level and drop to a new year-to-date low while others expect the recovery to pick up steam.
Do the charts support a relief rally or a further fall? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke below the 20-day exponential moving average (EMA) ($21,738) on July 25 and re-entered the symmetrical triangle pattern. This suggests that the recent breakout from the triangle may have been a bull trap.
The 20-day EMA has flattened out and the relative strength index (RSI) is just below the midpoint, indicating a range-bound action in the near term. The price may remain stuck between the support line and $24,276 for a few days.
If buyers drive the price above the moving averages, the BTC/USDT pair could rise to the overhead resistance at $24,276. The bulls will have to clear this hurdle to signal the start of a new up-move.
Conversely, if the price turns down from the moving averages, the bears will try to pull the pair to the support line. A break below this level could open the doors
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