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Bitcoin seems like it has struck a balance, hovering around the $26,500 mark. Just two days prior, it brushed an impressive high of $26,880 for the month, igniting conversations among traders and analysts regarding its immediate future.
The Current Lay of the Land
Delving into the intricate nature of the Binance BTC/USD order book, seasoned trader and analyst Credible Crypto highlighted the role of bid liquidity clusters in stabilizing the market. Taking to X (previously known as Twitter) to share his insights, he observed, “Some seller absorption happening here- this level being defended atm”.
This period of relative tranquility in the crypto realm saw other traders making predictions of their own.Some seller absorption happening here- this level being defended atm. Not much below it so if lost would probs see a nice flush to downside targets. Been fun watching this but going to call it a night. Let's see what tomorrow brings.
Hopefully a slow weekend so we can just chill… https://t.co/NFD7qcfAnC pic.twitter.com/4gWXpEDfsX — CrediBULL Crypto (@CredibleCrypto) September 16, 2023
Noted trader Crypto Tony delineated two potential scenarios. In both, the $26,000 mark remains a consistent pillar of support. "I am still looking for that dip down to $26,100 and a bounce for a long trigger," he shared with his followers on X.
He also expressed the possibility of another bullish push, stating, “Either that or if we just reclaim $26,600 highs I will look to long”.
Will the FOMC Influence Bitcoin’s Course?
Beyond the immediate market chatter, the cryptocurrency community's focus has squarely landed on an upcoming major macroeconomic event from the United States Federal Reserve: the Federal Open Market Committee (FOMC) meeting slated for September 20.
This pivotal gathering aims to decide on benchmark interest rates. As it stands, the prevailing market sentiment heavily leans toward these rates remaining untouched. Backing this consensus is the CME Group’s FedWatch Tool, which estimates a minuscule 2% chance of any unexpected twists in the narrative.
Yet, while Bitcoin's reactions to macroeconomic events used to be more spontaneous, recent patterns suggest a tamer response. As the FOMC looms, many, including the influential trader Crypto Santa, anticipate little disruption in Bitcoin's current trajectory.
He recently opined on X, "Next week's FOMC and Interest Rate decisions should induce some volatility, but BTC will likely continue to trade within $25k - $27k in the short-term…"