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Bitcoin Holds Above $27,000 As Traders Await Fed Decision

Bitcoin remained above $27,000, as the crypto market showed minimal movement while traders awaited central bank policy decisions, with some analysts anticipating a bullish fourth quarter based on historical trends.

Bitcoin holds steady at $27,000 as central bank mulls decisions.
Credit: Wix Media. Copyright: 2023.

In the European morning hours on Wednesday, Bitcoin (BTC) maintained its position above $27,000, showing remarkable stability in a crypto market that appeared to be in a state of suspense. The broader cryptocurrency market exhibited minimal fluctuations as traders held their breath, waiting for crucial central bank policy decisions expected in the coming days before making any significant moves.

Bitcoin Price

Bitcoin, the leading cryptocurrency by market capitalization, faced resistance at the $27,400 mark earlier in the day, failing to breach the critical 50-day moving average. Over the past 24 hours, Ethereum (ETH) recorded a 0.2% loss, Binance Coin (BNB) dipped by 0.6%, while Cardano's ADA and Dogecoin (DOGE) remained relatively stable.

Bitcoin holds steady at $27,000 as central banks decide.
Source: CoinGecko

The current state of the crypto market, characterized by limited price movement, has left traders speculating on the influence of impending central bank interest-rate decisions. Alex Kuptsikevich, a senior market analyst at FxPro, believes that this cautious approach among investors may be attributed to this uncertainty.

Central Banks Deciding

The Federal Reserve is set to announce its rate decision on Wednesday at 14:00 ET (18:00 UTC), and the Bank of England will follow suit at 12:00 BST (13:00 UTC) on Thursday. Meanwhile, Switzerland and Japan are also scheduled to unveil their rate decisions on Thursday and Friday, respectively. Kuptsikevich remarked:

"The situation for bitcoin is bearish if one looks solely at the technical picture on the chart. The corrective bounce in BTC is formally over; the price has fallen below the moving averages, and the short-term oversold condition is complete."

Contrary to this cautious outlook, analysts at the crypto services platform Matrixport are anticipating a bullish turn for the crypto markets in the fourth quarter. They cited historical seasonality as a reason for their optimism, noting that:

"Q4 traditionally represents Bitcoin’s strongest quarter, with an average of +35% return over the past nine years."

In a note to clients on Wednesday, Matrixport analysts suggested, "If history is any guide, Bitcoin could reach $37,000 by year-end."

As the crypto market remains in a holding pattern, all eyes are now fixed on the central bank decisions, which could provide the much-awaited impetus for a significant movement in the cryptocurrency space.


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