As the market braces for the Federal Open Market Committee (FOMC) meeting on June 18, the uncertainty once again hovers above the cryptocurrency market as it records increased volatility in the trading volumes. Additionally, as investors turn cautions due to the high possibility of a Fed rate pause, the Bitcoin price dropped to $104,000 mark with a change of approximately -2% in 24 hours.
Notably, if the FED rate stays unchanged, this could highlight a hawkish situation for the cryptocurrency market in the shorter time frame. Further, resulting in a short pullback in the upcoming time.
Let us now understand how this could impact the price of Bitcoin for the upcoming week!
Bitcoin Price Technicals Show Mixed Signals
The Bitcoin price has formed a triangle pattern in the daily time frame and continues trading within it since mid-April. Moreover, with a listing price of $104,366.42, its dominance has increased to 63.7833% with a market capitalization of $2.101 trillion.
The Stoch Relative Strength Index (RSI) has recently dropped below the overbought range (80) in the daily time frame, highlighting an increase in the negative price convergence. However, if both the averages plunge below the neutral point (50), it confirms a weakening action. Considering this sentiment, the BTC price is expected to record a short-term trend shift.
The Bollinger Bands (BB) show a retest by Bitcoin price toward its upper band during the recent rally. If it had successfully broken out from the upper band, a bullish scenario could have played out. However, the trend recorded a bearish reversal and is now testing its middle band as its immediate support.
Also, it’s important to note that a bearish action could result in it retesting its lower band of around the $101,700 mark. Additionally, the expanded bands suggest a high volatility for it in the crypto market, indicating a potential reversal in the coming time.
Will BTC Price Retest $102K or $107K First?
A reversal in the trend action due to an unexpected outcome during the FOMC meeting could result in the Bitcoin price retesting its immediate resistance level of $107,218 shortly. A sustained action around that range could result in it retesting its ATH of $111,970 this month.
On the contrary, if the bears continue dominating the crypto market, this could result in it dropping toward its $102,470 mark which is also the support of the triangle pattern. Additionally, if the bulls fail to regain momentum at that point, the value of BTC could plunge toward its milestone price of $100,000 or lower support of $97,380 respectively.
Also Read: Did the U.S. Meet Bitcoin Creator Satoshi in 2019? A Lawsuit Says Yes
