Bitcoin (BTC) maintained a price of $27,000 on September 20th as the cryptocurrency trading week reached its pivotal macroeconomic date. Data from Cointelegraph Markets Pro and TradingView showed that the focus of the BTC price was shifting upward compared to the previous week.
One of the key factors influencing the market was the decision on interest rates by the United States Federal Reserve. The Federal Open Market Committee (FOMC) was scheduled to announce its latest changes at 2 pm Eastern Time on that day. However, it was widely expected that rates would remain unchanged, with a 99% probability according to CME Group’s FedWatch Tool.
“The market is pricing a 99% probability that the Fed is on hold at this meeting. And the data is conducive for that, core CPI inflation is now running at the Fed’s target on a 3-month annualized basis,” financial commentator Tedtalksmacro told X subscribers as part of his latest analysis.
Despite the high likelihood of rates remaining unchanged, the event was still anticipated to bring short-term volatility. Material Indicators, a monitoring resource, analyzed the state of the BTC/USD order book on Binance, the largest global exchange, and noted that liquidity around the spot price was thin. They stated that the order book was set to accommodate more volatility.
The subsequent speech and press conference from Fed Chair Jerome Powell were also predicted to lead to further BTC price action. Traders anticipated some challenges to range levels as part of the FOMC reaction. Popular trader Daan Crypto Trades suggested that there was a good chance of triggering stop losses during the volatility.
Others also expected “choppy waters” for Bitcoin and predicted a lively trading environment during the FOMC announcement. Trader Skew noted that there were key areas for bids and ask liquidity in the $27,000 to $26,700 range.
Crypto Tony highlighted $26,800 as a crucial support level that Bitcoin bulls needed to protect. Holding above this zone would maintain his long position, but a drop below it could create a deviation. Traders were closely monitoring this level to determine the market’s direction.
As the market awaited the FOMC announcement, there was a mix of optimism and caution among Bitcoin traders. The potential for short-term volatility, coupled with the anticipation of key levels being tested, created an atmosphere of uncertainty. Traders were advised to conduct their own research and analysis when making investment decisions.
In conclusion, Bitcoin’s price held steady at $27,000 on September 20th as traders awaited the Federal Reserve’s decision on interest rates. Expectations of rates remaining unchanged led to a focus on BTC price volatility during the FOMC announcement. Traders analyzed the order book and identified key levels to watch as they anticipated potential stop losses and liquidity movements. Bitcoin bulls were vigilant in protecting the $26,800 support level. As with any investment, caution and research were strongly advised.