The upcoming Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, September 18, could potentially mark the first interest rate cut in years, with significant implications for financial markets and key assets like Bitcoin (BTC), necessitating a strategic trading approach for the week.
On a related note, CrypNuevo shared his Bitcoin trading strategy for the week, anticipating a sideways movement around Bitcoin’s current price before the meeting. He envisions the possibility of price fluctuating within a range, possibly spiking to approximately $61,600 before experiencing a decline later in the week.
The analyst foresees potential deviations and a surge to $61,600 before a probable substantial drop thereafter. CrypNuevo’s analysis emphasizes targeting two prominent liquidity zones this week, leading to liquidations for both long and short BTC traders. Despite projecting a rally up to $61,600, he suggests a downside target of $56,600, slightly below the current price support level.
Furthermore, CrypNuevo’s outlook aligns with an expected 25 basis point interest rate cut that could drive prices toward the initial target before a potential bearish turn following the FOMC meeting. His anticipation includes observing a ranging price movement leading up to the area around $61,350-$61.6k pre or during the FOMC session, followed by a cautious stance from Jerome Powell that might disappoint markets, triggering a reversal.
Regarding the FOMC’s interest rate decision and its impact on Bitcoin, the analyst notes a 50% probability of either a 25 bps or a 50 bps rate reduction. He indicates that a 50 bps cut could be perceived as bearish news, possibly signaling an impending economic downturn. Nonetheless, an interest rate decrease typically weakens the dollar and favors risk-on assets like Bitcoin.
While retail investors generally anticipate a bullish week, other technical analysts like Credible Crypto and Alan Santana highlight a bearish bias, suggesting a potential further drop in Bitcoin’s price before a resurgence into an uptrend, as reported by Finbold.
Disclaimer: The information provided in this article is not investment advice and carries inherent risks associated with speculative investing, where capital is exposed to potential losses.