Bitcoin Pulls Back to $76,000 Support Amid FOMC Volatility Catalyst
Bitcoin (BTC) has pulled back to around $76,000 after facing rejection at key technical and on-chain levels. The largest cryptocurrency by market capitalization is now trading in bearish hands, but it still holds above the short-term support of $73,516.
The nearest and heaviest supply range for Bitcoin falls between $77,000 and $80,000, where long-term holders are likely to continue selling. This range sits directly above the current market level, making it a significant barrier for a potential breakout.
Gold (XAU/USD) continues to trade lethargically below $4,300, holding above a short-term support of $4,250. The metal has declined for the second consecutive day as focus remains on the Federal Open Market Committee (FOMC) meeting and the expected interest rate hike.
Market participants expect the US Federal Reserve to raise interest rates to 3.75%-4.00% on Wednesday, potentially weighing on risk assets. The Crypto Finance team stated in a Tuesday market report that 'we expect the FOMC announcement and subsequent press conference to be a major volatility catalyst, with the potential for sharp and erratic moves across asset classes.'