Bullish View
Set a buy-stop at 48,000 and a take-profit at 50,000.
Add a stop-loss at 46,000.
Timeline: 1-2 days.
Bearish View
Set a sell-stop at 46,000 and a take-profit at 45,000.
Add a stop-loss at 47,000.
The BTC/USD pair struggled on Tuesday evening as the market reacted to testimony by stablecoin CEOs in the United States. The pair also remained under pressure ahead of the upcoming interest rate decision by the Federal Reserve.
Stablecoin Testimony
Last week, a number of CEOs in the cryptocurrency industry testified before Congress. The testimony was relatively positive, with the two sides advocating for regulations. And on Tuesday, a number of key players in the stablecoin industry testified before the Senate Banking, Housing, & Urban Affairs Committee.
They included representatives from Circle and Open Markets Institute. This was an important testimony since many policymakers have argued that the stablecoin industry poses significant risks to the market.
The BTC/USD pair was also little changed after Elon Musk said that Tesla will start accepting Dogecoin for merchandise sales. This is notable since Tesla becomes the first trillion-dollar company to accept the coin in its ecosystem.
Meanwhile, while the cryptocurrency industry has shed more than $700 billion of value recently, activity in the industry continued. For example, in a statement, FTX said that it will become a sponsor for Golden State Warriors. The deal is valued at more than $10 million dollars. FTX already sponsors the Miami Dolphins Stadium and Mercedes’s Formula 1.
The BTC/USD is also holding steady as investors wait for the decision by the Federal Reserve, The bank will likely decide to increase the amount of tapering by another $15 billion. The goal will be to end the asset purchases in Q1’22 and then start hiking interest rates gradually afterwards.
A hawkish Fed is usually viewed as being negative for Bitcoin prices. Still, there is a likelihood that a rebound will happen since the hawkish Fed situation has already been priced in by the market.
BTC/USD Forecast
The four-hour chart shows that the BTC/USD pair is trading at about 47,000. A closer look shows that it has found a substantial support at this level since it has struggled to move below the level several times before. This signals that the pair may have found a floor at this level. Still, the price is slightly below the 25-day moving average wile the Stochastic and Relative Strength Index (RSI) have moved to the oversold level.
Therefore, there is a possibility that the pair will retreat slightly ahead of the Fed decision and then bounce back afterwards.
