Outstanding analysts forecast that the coming week may be crucial for the cryptocurrency market, with the Federal Reserve’s decision on interest rates undoubtedly affecting the price of Bitcoin. Recently, Bitcoin saw critical volatility, falling below the critical $30K and $31K lines and even approaching a critical support level at $29.5K. These raised concerns about a serious collapse. The market is keenly waiting to see if the Fed’s interest rate decision and a significant options contract expiry strategy would break the current consolidation.
Week Important for Bitcoin
The Federal Reserve’s decision on interest rates is a crucial event that investors in all asset classes pay close attention to. The decision may have an impact on the value of the dollar, which may then have an impact on the value of bitcoin. If the Federal Reserve decides to raise interest rates, this might strengthen the dollar, likely leading to a decline in the value of Bitcoin as investors switch to the stronger dollar.
According to CME Group, financial experts estimate that there is a 92% chance that the central bank will increase interest rates on July 26 by one-fourth of a percentage point. The Federal Open Market Committee (FOMC) might increase the federal fund’s objective range to between 5.25% and 5.5%, a level not seen in nearly 22 years, if it satisfies these expectations.
The maximum pain level for Bitcoin’s potential expiry on July 20th is $29K. The total number of names under consideration stands at 45,083, with the best odds favoring a rise in the range of $30K and $31K, or a notional value of $300M. The total notional value is approximately $2 billion, and the put-to-call ratio is 0.55.
By July 28th, if Bitcoin’s price has not surpassed $30K, strong bearish pressure might be released, perhaps sending the asset’s price below $29K.
What Is the Value of BTC After That?
Bitcoin has consistently traded below the $30K level, showing that there isn’t much consumer interest in the current price ranges. As of this writing, the price of one bitcoin is $29,985, a decrease of more than 0.7% over the previous day.
Despite a bullish move towards $30,100, the candlestick’s long wick indicates sell-offs at higher prices. It seems likely that the bears will attempt to strengthen their position by bringing the price below the crucial $29,500 support level.
If they are successful in acting, it would suggest a bearish attitude towards the ongoing consolidation. The price of BTC will next likely fall to the strong support level of $27,200.
However, if the value rapidly recovers from $29.5K and beyond the $30,500–$30,800 range, it might indicate a potential increase to $31,000. A fresh uptrend might start if $32,500 is broken and closed above.
