Bitcoin (BTC) is experiencing a decline in value during the week of March 19th, leaving many traders and analysts wondering how far the price will drop. After reaching new all-time highs, Bitcoin is now testing recently established support levels. However, a stable floor has yet to be found. As a result, market observers are considering alternative support levels and preparing for a potential rebound.
Some experts believe that the decision on interest rates by the United States Federal Reserve, scheduled for March 20th, could relieve the pressure on oversold crypto assets. Historically, the run-up to Federal Open Market Committee (FOMC) meetings has led to a decrease in risk assets.
When it comes to the short-term outlook for BTC/USD, there are several popular predictions. Traders are closely monitoring the critical support level of $50,000, which has not been adequately tested yet. Analyst George predicts that Bitcoin will at least reach last week’s low.
Another trader, Ali, analyzes the realized price distribution (URPD) to identify key support levels for Bitcoin. He points out that levels such as $61,100, $56,685, and $51,530 should be closely watched.
Analyst Mark Cullen uses Fibonacci retracement levels to identify potential support levels. He also highlights a “bullish order block” below the current spot price of $64,000. Cullen believes that the correction will depend on the outcome of the FOMC meeting.
The FOMC meeting is the main focus of the week, not only for Bitcoin and altcoins but for all risk assets. Financial commentator Tedtalksmacro predicts that the market will bounce back after Federal Reserve Chair Jerome Powell’s speech on Wednesday. Powell is expected to adopt a hawkish tone to dispel any premature expectations of a rate cut.
Currently, BTC/USD is experiencing volatility around $64,000. Traders should conduct their own research and exercise caution when making investment decisions.
Note: This article is for informational purposes only and does not provide investment advice.