Bitcoin‘s (BTC) price fell below the critical $70,000 mark following a weekend decline. This drop occurred despite the cryptocurrency experiencing a significant increase last week. Altcoins and meme tokens such as Pepe, Notcoin, and GameStop also saw gains during this period.
What Will $68,000 Support Mean?
If Bitcoin finds support at the $68,000 level, it could attract considerable investor interest as they anticipate another attempt to reach all-time highs. The U.S. Federal Open Market Committee (FOMC) is set to convene on Tuesday, June 11, to discuss key economic policies, including inflation and interest rates.
Similarly, the U.S. Consumer Price Index (CPI) report, which tracks inflation trends, will be released on June 12. Economists expect the CPI to remain steady at 3.4%. This data may aid FOMC officials in confirming their economic outlook.
Will FOMC Meeting Affect Interest Rates?
Investors should brace themselves for market volatility throughout the week, although an interest rate change from the FOMC seems unlikely. On Monday, Bitcoin traded at $65,375, below key indicators such as the 20-day and 50-day exponential moving averages (EMAs) on the four-hour chart.
Moreover, Bitcoin is positioned below the middle boundary of the Bollinger Bands, signaling potential for a significant move. The narrowing of these bands suggests that BTC might be gearing up for a breakout, which could be influenced by the market’s response to the CPI report and the FOMC meeting.
Key Takeaways for Investors
– Monitor Bitcoin’s support at $68,000 and resistance at $69,642.
– Pay attention to the FOMC meeting on June 11 and the CPI report on June 12.
– Watch for Bitcoin’s position relative to the 20-day and 50-day EMAs.
– Observe the Bollinger Bands for signs of an impending breakout.
A breakout above $69,642 could signal an uptrend, potentially pushing Bitcoin back above $70,000. However, if this resistance remains unchallenged, selling pressure might increase, driving BTC below $68,000 and potentially down to $66,000.