cryptocurrency widget, price, heatmap
Search icon
Search icon
Telegram iconTwitter icon
Share icon
Share page
News/Is BTC setting up a bull trap hours before the FOMC meeting?
2 weeks ago5 mins read

Is BTC setting up a bull trap hours before the FOMC meeting?

news-markets.jpg

Bitcoin and the S&P 500 are both maintaining their respective levels of $19,000 and 3,890 from yesterday despite being hours away from this month's FOMC meeting. In fact, we can see traders eagerly taking their positions — mainly on the futures market — with the majority expecting a move to the upside.

futures data.png Source: Binance Futures Data

70% of the traders could find themselves on the wrong side of this trade once volatility unfolds, and with an open interest of $2.185B we can potentially see $1.52B worth of longs taking a loss if price breaksdown.

OI FUTURE.png Source: Binance Futures Data

BTC price recorded a modest 2% gain in order to stay above $19,000, even though DXY reached its highest level in twenty years, posting 110.86 earlier today. The surge in DXY is understanable, given that it is a safe-haven for investors offloading risk-on assets in response to hawkish monetary policy decisions. However, BTC's stability is interesting, and could hint toward a potential bull trap for late longers.

At this point, we can assume that the market is ready for a 75bps hike — any big moves, however, are likely dependent on post-meeting guidance provided by the Fed chair.

Coin360 (4).png

Top altcoin gainers and losers

Gainers:

Chain XCN (+5.88%) Ripple XRP (+5.57%) Litecoin LTC (+5.03%)

Losers:

Phoenix Global PHB (-5.34%) Algorand ALGO (-4.69%) Osmosis OSMO (-3.91%)

BTC Technical Analysis

BTC is range bound between $20,500 and $18,200, with the former being a strong, horizontal resistance level reinforced by the 200 EMA on the 4H chart.

On the other hand support towards the downside is constantly being tested at $18,700. However, we are yet to have another retest of $18,200, and potentially the June lows of $17,700, before bulls can start considering a strong recovery.

btc 21SEP.png

ETH Technical Analysis

Currently trading at $1,348, ETH price has shown weakness due to its low volume. The key range for bulls to monitor right now is $1280-$1250 which proved to be a double top in June. If Ethereum can flip this previous resistance into a strong support, we can see some potential upside. Otherwise a dive to $1,060, as mentioned earlier, seems more and more probable.

On the flip side if the market turns green after the meeting today we’ll look toward $1,440 and $1,650 as the next targets.

eth21.png

Coin360 Daily Digest

Apart from the FOMC being the major highlight for today, here's a run down of some of the major news stories from the crypto market.

coin360digestsep21.jpg

For more daily updates and news, follow us on Twitter.

Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.