Bitcoin Crashes to $76.5K Amid Fed Rate Hike Anticipation
Bitcoin's price plummeted to around $76,500 today, testing the lower boundary of its consolidation range since late August. The cryptocurrency is facing pressure from Wall Street's pullback and a strengthening US dollar ahead of tomorrow's Federal Reserve decision.
The market now expects the Fed to raise interest rates by 25 basis points, which could weigh on inflows into spot Bitcoin ETFs. These flows have been an important source of support for the new bull market, but their impact may be limited if the rate hike occurs.
On the hourly chart, BTC has failed to break above $80,000 and is moving lower towards $76,700, below its 200-period and 50-period EMAs. The Relative Strength Index (RSI) has fallen to around 32, indicating bearish conditions, while the Moving Average Convergence Divergence (MACD) shows a crossover that could be problematic for bulls.
Bitcoin's failure to break through the key $83,500-$84,000 area means it may continue to fall, potentially testing the $45,000-$50,000 range. On the other hand, a breakout above $84,000 could give bulls hope of reclaiming the $100,000 level.