Key Points
- Bitcoin (BTC) is nearing $60,000 amidst volatile market conditions.
- Several factors, including the upcoming US Federal Reserve’s interest rates decision and Japan’s central bank raising rates, are creating headwinds for Bitcoin.
The price of Bitcoin (BTC) is moving closer to $60,000 as the cryptocurrency’s price weakness persists. The BTC/USD pair is preparing to test $62,000 under turbulent market conditions.
Market Pressures
Bitcoin experienced a fresh wave of selling pressure after the daily close, with an almost 8% drop. This downward trend comes as risk assets brace for the impending interest rates decision from the US Federal Reserve on March 20.
Simultaneously, the US dollar has been strengthening, with the US dollar index (DXY) peaking above 104 before stabilizing. Market observers believe the Federal Reserve’s event is one of several challenges Bitcoin is facing.
Additional Factors
Other challenges include the news that Japan’s central bank has increased rates for the first time since 2007 and outflows from the Grayscale Bitcoin Trust (GBTC), which reached a record $642 million on March 18.
Michaël van de Poppe, founder and CEO of MNTrading, believes we’re nearing a bottoming process and the correction is shallow, indicating potential opportunities. A chart accompanying his commentary suggests a bearish divergence on BTC/USD, with $60,000 being eyed as a potential reversal point.
Long-standing participants, however, remain optimistic about Bitcoin’s overall strength. Veteran trader Peter Brandt, who has accurately predicted various BTC price milestones in recent years, sees the current correction as nothing to be overly concerned about.
Brandt indicated a potential head and shoulders pattern playing out on daily timeframes. He warned of a deeper drop towards $55,000, but even this would keep BTC/USD within its broader rising trend. Despite repeated failures to turn old all-time highs at $69,000 from 2021 into definitive support, confidence in the bull market has not diminished.
