Bitcoin price is going through quite a rigid phase as it fails to instill the required momentum to hit $30,000. The bears successfully limit the price to the middle threshold while the bulls continue to resist. Although the volume has increased to some extent, the price is likely to remain volatile as the FOMC fresh interest rate meeting is underway.
Although the price received a fine rejection, it continues to remain in a profitable region, but it is believed to drop towards the lower band soon. In the meantime, the crypto star is showing positive signs, which have been attributed to two important support levels. Currently, the price is approaching minor resistance in the $28,900-$29,000 range.
In the near term, local strong supports are found at the $27,666 Fibonacci level and the lower Bollinger band at $27,637. Also, minor resistance can be seen at the 0.5 Fibonacci level of $28,817 and the upper Bollinger Band of $29,603. Between these levels, the middle or middle levels of the bands are around $28,620.
In the case of an upside break through the minor resistance at the 0.5 Fibonacci level of $28,817 and the upper Bollinger band of $29,603, this indicates a potential uptrend. Also, if the RSI goes above 50 levels, the MACD starts to rise and the volume oscillator turns positive. If all these indicators line up, we can expect a steady rise in Bitcoin price, testing the $29,969 Fibonacci level.
Also Read: FOMC News: Here’s What Bitcoin (BTC) Traders Can Expect With the FED’s Interest Rate Hike
Conversely, in a bearish scenario, if the price of BTC fails to clear minor resistance and instead breaks below local strong supports at the $27,666 Fibonacci level and the lower Bollinger Band of $27,637, it could indicate a potential downtrend. However, if the RSI breaks below 50, the MACD may continue to decline while the volume oscillator remains negative. This may result in Bitcoin price being rejected and testing the 24-hour low at around $27,910.
Currently, new interest rates could be announced at any time and as a result, the price of BTC looks volatile and uncertain. Although the price may tend to send bullish signals, one should be quite cautious and watch the bullish and bearish scenarios closely.