May 1, 2024

Will Bitcoin Price Bounce Back At 57K? Here's Why These Levels Are Important — TradingView News


Bitcoin BTCUSD traded near two-month lows at the open of Wall Street trading on May 1 as risk assets prepared for the next macroeconomic developments in the United States.Cointelegraph

Bitcoin volatility declines ahead of FOMC meeting

Data from Cointelegraph Markets Pro and TradingView tracked volatile BTC price movements in the hours after it hit a new low of $56,500 on Bitstamp.

Traders remain nervous about risk assets across the board ahead of the Federal Reserve's next interest rate announcement and subsequent press conference with Chairman Jerome Powell.

With the Quarterly Refunding Announcement (QRA) dealing a blow to the US liquidity outlook, market participants were hoping that Chairman Powell would not take a too hawkish stance following the Federal Open Market Committee (FOMC) meeting.

“This afternoon's FOMC statement and Chairman Powell's press conference will reinforce that USD money markets are pricing in a much more gradual policy normalization cycle,” Darius Dale, founder and CEO of risk management firm 42 Macro, wrote in part of an X digest article.

“While Chairman Powell seems keen to highlight 'two-sided risks to the economic outlook,' the reality is that the preponderance of evidence supports a 'no landing' scenario as the most likely outcome. So 'higher for longer' is likely to be the dominant message today.”


The latest data from CME Group's FedWatch tool highlighted subdued expectations for good news, with the Fed having a 99% chance of keeping interest rates at current levels.

On a more optimistic note, popular trader CrypNuevo suggested that the worst of Bitcoin and altcoins' losses are likely over.

“BTC is really plummeting, which reinforces the idea that whatever Jerome Powell says today, it's probably priced into the price,” he told X subscribers.

“Will we see a retest of the low of the range?”


Meanwhile, trading firm QCP Capital, in its latest London & New York Daily Colour market update sent to subscribers on its Telegram channel, noted that both Powell and QRA could deliver a surprise to risk-on sentiment.

“Two important events are occurring today that could exacerbate or even reverse this bearish move,” the firm said.

“First, if Powell takes a dovish stance at the FOMC, it could signal a bullish turn. Second, if the QRA (quarterly borrowing announcement) shows a lot of issuance of short-term US notes (morning session) rather than 10-year notes (afternoon session), it could ease concerns about a sharp rise in long-term interest rates and put some brakes on the USD appreciation.”

BTC price is seeing a “classic” bull market reversal

Bitcoin traders focused on key BTC price levels after multiple boundaries were broken.

Related: Why is Bitcoin's price dropping today?

“The current Bitcoin pullback is slowly turning into a nearly 50-day pullback,” popular trader and analyst Recto Capital revealed on the same day.

The attached chart compares the BTC price pullback throughout the bull market that began in early 2023.

Recto Capital described the recent drop of more than 20% as “typical” in the current circumstances.

“Typical rebounds are two to three weeks, but can last up to two months,” he noted.Cointelegraph

Meanwhile, Filbfilb, co-founder of trading suite DecenTrader, predicts that Bitcoin could make a comeback following the recent resurgence of gold.

“I think it's possible to go lower than this chart, but if the bull market continues over the next few months, this is likely how it will play out in general,” he wrote in an X thread comparing the two assets.Cointelegraph

This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.


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