Bitcoin Stuck in Range as FOMC Decision Looms Amid Oil Price Surge
Bitcoin's price action remained range-bound on Wednesday, as it struggled to break through the $64,000 level. The cryptocurrency had dropped to an 11-day low of $62,700 the previous day and was still under pressure from downside forces.
The broader market atmosphere was one of risk-off, with equity weakness tied to Asian chip stocks spilling over into US trading and putting pressure on crypto alongside traditional markets. Oil prices also surged after renewed US-Iran tensions, raising concerns about inflation expectations and complicating rate outlooks.
Markets are divided on the Federal Reserve's next move, with a 66.3% probability of keeping interest rates unchanged at current target levels, according to CME Group's FedWatch Tool data. The upcoming FOMC decision and press conference by Fed Chair Kevin Warsh could shift expectations for the rate path.
Bitcoin's trading behavior appears technically constrained, with price action broadly within a range bounded by the 50-day simple moving average (SMA) and the 50-day exponential moving average (EMA). The source added that breakouts have failed as price encountered liquidity zones on both sides of the current range, which could act like magnets during volatile sessions.