Bitcoin’s Unfazed Response: Shrugs Off FOMC and Mt. Gox, Experiences $26.7K Drop

On September 21st, Bitcoin experienced a gradual decline from its $27,000 position, displaying a lack of significant reaction to recent macroeconomic developments in the United States.

Bitcoin had been seemingly unperturbed by the Federal Reserve’s decision to maintain interest rates, and even the statements and press conference by Fed Chair Jerome Powell failed to provoke any substantial volatility.

Contrary to many expectations, Bitcoin’s price action carried on as if it were unaffected by any external catalysts. Furthermore, news of the postponement of payouts to creditors of the now-defunct Mt. Gox exchange for an additional year failed to register any significant response in the markets.

The Federal Reserve’s announcement of an interest rate pause did not catch anyone off guard, as pointed out by the popular trader Jelle. He stated, “Price is still in the same spot, but at least now we don’t have FOMC hanging over our heads. Rangebound until proven otherwise.” Jelle maintained a bullish outlook for the long term, suggesting the possibility of an upward breakout from the current trading range, which had persisted for over a year.

Another trader, Crypto Tony, emphasized the importance of Bitcoin holding above the $26,800 mark for the weekly close. He stated, “So my plan was to long while we remained above $26,800 and thus far that is what we are doing. Certainly came down a bit so up to the bulls now to end this week on a bullish high.”

Examining the reasons behind the post-Fed decline, trader Crypto Ed proposed that the previous touch of the month-to-date highs might have raised suspicions.

Looking at longer timeframes, Crypto Ed remained conservative and maintained his theory that Bitcoin’s price had potential downside ahead. On the monthly chart, he highlighted that the support level at $27,150 had now turned into resistance, stating, “The BTC Monthly level of ~$27,150 was lost as support last month. Now $BTC is rejecting from the same level, ~$27,150 is acting as resistance for the time being.” This observation underscored the importance of this price level in Bitcoin’s current price dynamics.

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