Bitcoin price has been hovering above the $20,400 resistance ever since it broke above the levels during the past weekend. However, the prices have been deflated in the past couple of days not only because the bears have tightened their grip but also because the bulls appear to have withdrawn to some extent. As a result, the BTC price is very close to dropping below $20,000 again.
Meanwhile, the FOMC’s fear appears to have spread significantly, as crypto assets have been quite volatile since the early trading hours. Since the market crashed in May 2022, a new trend of the market plummeting with the release of new rates has emerged.
A well-known analyst and trader analyzed the BTC price variations in the recent past and believes the markets may react in a similar way and plunge significantly at 2 PM EST.
The BTC price dropped sharply shortly after the new rates were announced at 2 PM EST, but quickly recovered following FED Chair Jereme Powell’s speech at 2:30 PM EST. In contrast to the previous trend, the BTC price dropped further after a minor rebound fueled by his speech. As a result, the crypto space is divided into likely price movements following the FOMC meeting.
Massive Bitcoin Volatility Fast Approaching
As a result, a significant move is expected in the next 12 hours as the FOMC may be the catalyst that the crypto markets require to increase their volatility. However, 3 possibilities may emerge, either the FED may raise interest rates by 50 bps or 100 bps. While a rise of 75 bps may also be considered which is more likely which is the last phase of the distribution at $21,000.
The analyst, il Capo of Crypto, believes that 75 bps may be a fair raise for today that may slightly propel the BTC price beyond $21,000. However, a rise of 50 basis points may raise the price to $23,000, which is more unlikely. Therefore, the analyst cautions the crypto enthusiast not to use any leverage today, as the Bitcoin (BTC) price and the entire market are expected to remain highly volatile.
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