• Bitcoin price traded precariously ahead of the U.S FOMC data release.
• The U.S dollar was expected to be more hawkish than usual, which would be bearish for Bitcoin.
• Crypto traders were hoping for a close above $26k to assure a bullish outlook on the relief rally.
Bitcoin Price Volatility Spikes Ahead of US FOMC Data
A few hours before the Fed released the FOMC meeting minutes, Bitcoin price traded precariously at a support level of around $26.6k, which was achieved late last week. Traders were convinced of choppy crypto markets backed by both technical and fundamental aspects due to the expected United States Federal Reserve’s (FOMC) record of their most recent meeting, which provides comprehensive insights into economic and financial conditions that influenced their vote on where to set interest rates.
U.S Dollar Currency Index on the Rise
The United States Dollar Currency Index (DXY) was up slightly during the early New York trading session according to market data provided by TradingView – DXY was up about 0.08 percent to trade around 103.594 – while Bitcoin price had dropped about 3 percent to trade around $26.4k.
Crypto Price Action in Relation to U.S Economic Data
The mother coin was largely supported by its weekly 200 Moving Average (MA), despite signs of bleeding on short time frames as traders understand the need for Bitcoin price to close Wednesday’s session above $26k in order to assure a bullish outlook on a relief rally; meanwhile, Bitcoin’s dominance has presented much uncertainty in recent weeks..
A more hawkish-than-expected FOMC meeting minutes is likely good for the U.S dollar but bearish for Bitcoin, causing many traders and investors alike wary of further losses in an already volatile market atmosphere caused by competing forces from both directions: technical analysis and fundamental analysis are met with equal caution when attempting any type of prediction or decision making process regarding investments in cryptocurrency markets today..
As it stands now, it is unclear whether or not this will prove beneficial or detrimental for cryptocurrency prices overall; however, investors should remain cautious as they make decisions based off current market conditions as volatility can change quickly and drastically without warning depending on economic events such as this one taking place today with US FOMC data being released .