Key Points
- Bitcoin (BTC) has hit new intraweek lows on March 19, testing levels recently reclaimed as support.
- Market observers are anticipating the United States Federal Reserve's interest rate decision on March 20 as a potential relief for oversold crypto assets.
Bitcoin's price is experiencing new intraweek lows on March 19, leading traders and analysts to question where the cryptocurrency's value might stabilize.
Bitcoin's Downward Momentum
After reaching new all-time highs, Bitcoin is now testing the strength of levels that were recently regained as support. However, a dependable floor has yet to be established.
Observers are now identifying more fundamental lines in the sand, while also preparing for a potential relief bounce.
Many suggest that the decision on interest rates by the United States Federal Reserve, due on March 20, could be a critical event that eases the pressure on oversold crypto assets. Historically, the run-up to Federal Open Market Committee (FOMC) meetings has often seen a suppression of risk assets.
Short Term Predictions for BTC/USD
Bitcoin is quickly approaching the $60,000 zone, mirroring the movement that followed its first new all-time high earlier this month. This is a crucial point for traders, and one that has not yet been convincingly retested.
A popular trader, George, predicts a sweep of last week's low. If that doesn't hold, he believes we could see sub $60,000 values again.
Another trader, Ali, used realized price distribution (URPD) to show where the current set of unspent transaction outputs, or UTXOs, were created. This provides an insight into cost basis and areas of interest regarding support and resistance.
Ali identified key Bitcoin support levels to watch as $61,100, $56,685, and $51,530, examining ground below $60,000. He also noted critical resistance points for BTC at $66,990 and $72,880.
Analyst Mark Cullen used Fibonacci retracement levels to highlight potential support levels. He also pointed out a "bullish order block" of bids sitting right at the current spot price below $64,000.
The FOMC continues to be the main macro focus of the week, not just for Bitcoin and altcoins, but for the broader risk-asset spectrum.
Financial commentator Tedtalksmacro predicted that the lower we go now, the higher we'll be by the time Jerome Powell, the Fed Chair, finishes speaking on Wednesday. Given the sticky nature of inflation, he suggested that Powell would aim for a hawkish tone, resetting any premature market expectations of a rate cut.
As confirmed by the latest data, BTC/USD is currently fluctuating around $64,000.
