Crypto’s FOMC Phobia is Here Again

The total value of the cryptocurrency market has dropped by another 4% in the past day, and it is now in grave danger of dropping below the $900 billion level.

Bitcoin’s price has dropped by 3% in the past day and is currently trading at $19,060. But the altcoins cryptocurrencies are the ones that are getting hit the hardest by this bear market. As you are aware, I am awaiting the final fall below $17k and lower, but before I anticipated the regional bounce, I am waiting for it to go lower. As of today, I am able to see that the Bitcoin is even weaker than I had first anticipated. It would appear that the last slide has already gotten underway and now at time of writing, it is almost at $18720.

Following the destruction of the golden Fibonacci pocket, I anticipated the formation of a bull trap with the subsequent pump to the 0.5 Fibonacci level ($20800) in the last day . However, the price was even unable to break through the 0.6 6 Fibonacci level, which is despite the fact that it would be rationally to see because there is a lot of liquidity of the short traders. As a result, we were given the results of the valid retest of the broken golden Fibonacci pocket. At this point, I believe that the price of bitcoin is forming the final dump below $17500 and it has been sliding down since last 18 hours .

The breaking of the trendline and the demand zone will serve as evidence of the completion of the dump, but at this point I am very close to being certain that this break down will take place maybe at 18,700 this hour and is soon for a slight recovery until next morning .

There are only a few days left until the next meeting of the FOMC, and a momentum continuation sell signal has begun to form. The market’s reaction to the results of the press conference is unpredictable; nonetheless, the market’s larger price structure continues to indicate that it will either test the support level at 17,000 or drop to a lower low.

Within a day, there would be a possible minor rebound to $19,600, but it was possible that it would not happen until Wednesday before the FOMC

The prevailing macroeconomic conditions are directly responsible for the market decline in cryptocurrency prices. According to industry professionals, the integration of Ethereum could not have taken place at a more inopportune moment.

The Federal Reserve has adopted an unusually hawkish position as a response to the skyrocketing inflation.

The Federal Open Market Committee is scheduled to meet again on September 21 to address the impending increase in the benchmark interest rate. The CME Fed Watch Tool predicts that the Federal Reserve will almost certainly decide to implement a rise of 75 basis points. Experts are of the opinion, however, that the market is also pricing in an increase of 100 basis points.

A rate increase of 75 basis points is unlikely to have a significant effect on the cryptocurrency market because it has probably already been fully priced in. if the rates were to reverse to 75 points, 16K could be invalidated around 17K again and hope the market reverses, as there are too many backlash for the feds, as serious major analyst is afraid, the momentum of such high rate might trigger a dive which even the feds might not be able to hold back as the macroeconomics is now based Not just on US market scale but on a higher global scale. The external dangers are significantly more significant.

As soon as 19,500 is broken, a brand new swing trade sell signal that indicates a continuance of momentum will go into effect. The number 22,500 serves as a useful indicator of risk. Which suggests that the price needs to go towards the 17,000 range in order to justify taking on this risk, so wednesday is a critical ,as the support zone from 15K to 17 K is quite like to happen

if the following candle generates a signal that is in contradiction with the previous one, then this is the point at which you should moderate your risk, which means that you should accept the relatively minor loss or gain. Therefore, you are able to begin with a high level of risk, and then adjust it as the market reveals fresh facts.

The correlation between Bitcoin and the S&P 500 is high, and the S&P 500 is heavily impacted by interest rates. In the event that there are any unexpected developments, the conclusion of the FOMC news conference is what will be responsible for moving the market drastically in either direction.

The market is a very random place, and the effects of fresh information can be seen almost instantly. Charts can assist us in determining the likelihood of certain outcomes and in mitigating risk, but they do not confer any distinct competitive edge in the market.

Now, this may be disconcerting, but this does not mean that other altcoins, particularly micro cap altcoins, cannot have positive price movement.

Micro cap altcoins are particularly susceptible to bullish price movement. My opinion is that at this point in the season / cycle, it is the optimal time to accumulate if you have ample cash , as well as to keep an eye out for new business prospects in the market.

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