As the U.S. Federal Reserve prepares to announce its newest policy decision, Bitcoin investors are anxiously waiting to determine if Chair Jerome Powell will put a finish to the quantitative tightening (QT) era, which has been exerting a significant influence on the crypto market.
Quantitative tightening (QT) is a monetary policy strategy that most central banks, including the U.S. Federal Reserve, use to reduce the amount of money circulating in the economy
In a poll by crypto analyst Benjamin Cowen on X, 42% believe QT will conclude, whereas 58% believe it will continue. This move, accompanied by the Federal Reserve’s position regarding interest rates, can affect the trend of the Bitcoin market in the near term.
Meanwhile, Bitcoin sentiment has been unstable, and its price has been hovering above $100,000 since last week. However, technical indicators like the Relative Strength Index (RSI) are showing that it might soon slide below the level soon.
Even the Bitcoin’s TD Sequential indicator has flashed a sell, so the price might decline, perhaps to $96,000.
Moreover, Analysts have noted that the price is struggling to break above the $103,400 resistance. Right now, Bitcoin’s current price chart resembles a bearish flag pattern, and that typically indicates the downtrend will persist.
The result of the next Federal Open Market Committee (FOMC) meeting will be very important for Bitcoin’s price in the short term. If the Fed decides to lower interest rates or make monetary policies less strict, Bitcoin might rise and could go over $110,000.
If the Fed goes in a more hawkish direction, more traders may sell Bitcoin, and that could push prices lower to test support levels.
Also Read: Is XRP Heading for a Crash or Rebound?
