The cryptocurrency market has been extremely volatile in the last 24 hours after the FOMC meeting.
While analysts expected a pump in Bitcoin’s price, the market turned red, with over $300 million worth of leveraged positions liquidated from the market within hours.
Fed cuts interest rate, Bitcoin tumbles to $108k
The primary event of October took place yesterday (Wednesday, October 29), with the Federal Reserve doing exactly as analysts had predicted.
The Fed cut interest rates by 25 basis points, making it the second time it has done so this year.
BREAKING: 🇺🇸 Federal Reserve cuts interest rates by 25bps.
0
Reply
Copy link
The rate cut was expected to push Bitcoin’s price higher, but the market turned bearish immediately afterwards. The bearish performance comes as Fed Chair Jerome Powell delivered his speech.
Powell revealed that the apex bank will end quantitative tightening on December 1st.
This means that the Fed will reduce the financial assets it holds on its balance sheet by selling them into the financial markets, which decreases asset prices and raises interest rates.
With this, it is highly unlikely that the Fed will cut interest rates in its next FOMC meeting in December.
Powell added that the ongoing government shutdown is affecting the economy. He also highlighted that the tariffs are pushing up the prices of goods.
His speech sparked volatility in the cryptocurrency market, with over $300 million worth of leveraged positions liquidated from the market within 15 minutes.
The market suffered another heavy blow during the meeting between President Trump and his Chinese counterpart, President Xi.
JUST IN: $300,000,000 liquidated from the crypto market in that past 15 minutes as Fed Chair Jerome Powell delivers FOMC speech.
636
Reply
Copy link
The bearish performance saw Bitcoin temporarily drop to the $108k level. It has now bounced back to $110k and could rally higher in the near term.
Bulls defend the $106k level as technical indicators turn bearish
The BTC/USD 4-hour chart continues to be bearish and efficient as Bitcoin has lost 2.5% of its value in the last 24 hours.
The bulls defended the $106k support level on Wednesday as Bitcoin temporarily dumped below $108k following the FOMC meeting.
It has now surpassed the minor resistance level at $108,900, which aligns with the 23.6% Fibonacci retracement.
The price action did a double-top near $117,700, followed by a correction, with the bulls now pushing the price towards the $111k mark.
The RSI has dropped to 49, which is below the neutral 50, suggesting that the recent buy pressure has faded. The MACD lines also crossed over into the negative territory on Wednesday, briefly flashing a sell signal.
If the daily candle closes above $110,700, it could trigger a recovery towards the $112,200–$114,950 regions. At press time, BTC is trading above $110,800 per coin.
However, failure to close above this level could see Bitcoin retest the support levels between $106,100 and $103,500.
The post Bitcoin reclaims $110k after Fed rate cut sparks volatility: check forecast appeared first on Invezz
