Bitcoin (BTC) Reacts to the FED Policy Decision and Press Conference
A 3-day winning streak came to an end for Bitcoin (BTC) on Wednesday. While avoiding a fall back to Monday’s current month low $32,937, Bitcoin slipped by 0.40% to end the day at $36,829.
Bitcoin Reaction to the FED
Ahead of the FOMC’s announcement and FED Chair Powell press conference, Bitcoin had been up 2.74% before hitting reverse.
Bitcoin market reaction to the FOMC policy decision and rate statement was evident late in the U.S session. Bitcoin rose to a day high $38,930 before hitting reverse. The reversal continued through the FOMC press conference, with Bitcoin sliding to a day low $36,276.
A late move back through to $36,800 levels limited the damage on the day, with Bitcoin largely tracking the NASDAQ 100 which eked out a 0.02% gain.
Earlier in the month, Bitcoin had also been sensitive to the FOMC meeting minutes. Bitcoin had slumped by 2.7% within the first hour of the statement being released. This time round, Bitcoin fell by 1.10% in response to the rate statement and by 4.50% in response to the statement and the press conference.
Broader Crypto Market Has a Mixed Session
The Bitcoin Fear & Greed Index
Three consecutive days in the green and a modest fall on Wednesday have influenced the Bitcoin Fear & Greed Index. Having fallen back to 11/100 on 23rd January, the Bitcoin Fear & Greed Index sits at 20/100 at the time of writing. The rise has seen the Index inch closer to a current month high 24/100 and more importantly 30/100 levels.
The index currently sits in the red, reflecting the market’s bearish sentiment. A move back through to 30/100 and into the orange would reflect a shift in sentiment and a buying opportunity, however. Back in November, the Index had risen to 84/100 on 9th November before hitting reverse.
Bitcoin Price Action
At the time of writing, Bitcoin was down by 2.75% to $35,816. A move through the day’s $37,345 pivot would bring the first major resistance level at $38,414 and Wednesday’s high $38,930 into play.
Failure to move through the day’s pivot, however, would leave the first major support level at $35,760 in play. An extended sell-off would bring sub-$33,000 levels into play once more. The second major support level sits at $34,691.
At the time of writing, the NASDAQ100 mini was down 235.75 points, a negative signal for Bitcoin and the broader crypto market.