The price of the world's biggest cryptocurrency, Bitcoin (BTCUSD) slightly reversed from the fresh monthly highs ahead of the US Federal Reserve’s interest rate decision. The leading cryptocurrency climbed to a fresh 3-week high of $27,450 on Tuesday Morning. During the last week, the crypto pair fell below under $25,000 but immediately regained momentum as $25k is a critical level for bulls to defend in the market.
The Bitcoin rebound started after the European Central Bank (ECB) signaled that it is nearing the end of the rate hiking cycle. Besides, there are rising expectations that the Fed will keep interest rates unchanged in the upcoming FOMC meeting. Fed’s monetary policy statement on Wednesday might provide insights into the timing of interest rate peaks and the economic outlook. But investors should closely watch Chairman Jerome Powell's comments for any hints about the central bank's future actions.
Bitcoin (BTCUSD) medium-term technical outlook
On the technical side, the short-term momentum is neutral now as the pair slightly reversed from the daily highs. While the technical picture suggests that the bullish bias stays intact. Turning to the daily chart, we see that the crypto pair has been in a spectacular comeback in the past few days. On the upside, the insignificant resistance lies near the $27,750 (200-SMA), if the price breaks through the $27,750, a retest of the August highs around $28,150 and then $28,500 will be on the cards. And if the bullish momentum is sustained, the pair may extend the recovery towards $30,000.
On the flip side, any meaningful pullback now seems to find some support near the $26,300/100 zones. However, the bears need to see a confirmed break below the crucial support of $25,000 for the strong bearish move. if $25,000 gives way, the immediate bullish scenario will be invalidated, opening the way to a sharp sell-off towards $20,000.
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