Bitcoin price encounters resistance from FOMC, trader anticipates rise to mid-$50K range.

Bitcoin (BTC) inched closer to $60,000 as it struggled to overcome its price weakness. The cryptocurrency was preparing to test $62,000 amidst volatile conditions. However, it encountered selling pressure, dropping nearly 8% after the daily close. This decline came ahead of the United States Federal Reserve’s interest rates decision on March 20, which added to the headwinds facing Bitcoin. The U.S. dollar also gained strength, with the U.S. dollar index (DXY) rising above 104 before stabilizing. Other factors contributing to Bitcoin’s downward trend included Japan’s central bank raising rates for the first time since 2007 and outflows from the Grayscale Bitcoin Trust (GBTC), which reached a record high of $642 million on March 18. Despite these challenges, some market observers believe that Bitcoin is close to reaching a bottom and that the correction is shallow, presenting great opportunities for altcoins. Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted the potential for a bearish divergence on the BTC/USD chart, with $60,000 being a possible reversal point. On the other hand, veteran trader Peter Brandt remains positive about Bitcoin’s overall strength, considering the current correction as a healthy part of a major bull trend. He noted the potential formation of a head and shoulders pattern on daily timeframes, suggesting a possible dip to $55,000 but emphasizing that it would still align with the broader rising trend of BTC/USD. Despite the repeated failures to surpass old all-time highs, confidence in the bull market has not diminished. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.