Bitcoin price dives ahead of FOMC amid warning that $17.6K low was not the bottom
Bitcoin (BTC) fell to weekly lows at the August 17 Wall Street open as the upcoming Federal Reserve comments on unsettled risk assets.
The dollar rises as the Fed minutes due to
Data from Cointelegraph Markets Pro and TradingView tracked a more than 2% daily decline in BTC/USD, which hit $23,325 on Bitstamp.
The pair was already showing signs of weakness, and rallied further as US stocks began trading, hours before the Federal Open Markets Committee (FOMC) was due to release minutes from its latest meeting.
While it did not involve a decision on interest rates, the meeting was expected to provide insight into the Fed’s thinking regarding the next rate hike in September.
“The important event tonight with the FOMC minutes, where information can be received whether the FED is going to be hawkish or dovish,” Cointelegraph contributor Michaël van de Poppe in summary in his latest Twitter update.
“I don’t think it will have a massive impact, but crypto tends to give it a ton of value and therefore a lot of volatility.”
Stocks had hit major resistance in line with crypto during the week, leading some worried sources to continue predicting a further big pullback across the board.
Justin Bennett, the founder of crypto education platform Crypto Academy, warned that the S&P 500 was copying behavior from just before the 2008 global financial crisis.
“This is absolutely incredible. S&P 500 mimics 2008 crash. Even the timing since the ATH is almost identical,” he commented on a comparative chart.
“The bottom is NOT for stocks or crypto.”
A telltale sign of the day came in the form of a bullish US Dollar, with the US Dollar Index (DXY) attempting to attack resistance throughout August.
“$DXY could be heading to 112-113 after fakeout below 105.50. That’s going to weigh on stocks and crypto,” Bennett added.
Buyers see lower bids
On shorter time frames, the trend on Bitcoin also lost rapidly as bid support moved down the Binance order book.
Related: Bitcoin price sees firm rejection at $24.5k as traders doubt strength
On-chain monitoring resource Material Indicators caught action, concluding that “even if we get another pump, you still think the Bear Market Rally is losing momentum.”
An upside target can come in the form of the 100-day moving average, a separate post explainedsitting at $24,544 at the time of writing.
“Have been warning about this collapse for Bitcoin for the past few days,” commented Matthew Hyland concluded.
“The structure has generally changed weakly recently. The market seemed to have its first signs of life last week. It appears to be short-lived.”
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