Bitcoin Price Slips Near $66K Amid Fed Rate Decision: What's Nex

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Bitcoin Price Slips Near 66K Amid Fed Rate Decision: What's Next
Bitcoin Price declined over 3.32% yesterday, retracing the $66,000 Mark.
The price drop seemed to be largely constrained by the anticipation of Federal Reserve data and key inflation data.

Bitcoin price fell sharply yesterday, retracing the $66,000 Mark again this month. This downturn in the broader cryptocurrency market appears to be influenced by the anticipation of an upcoming Federal Reserve meeting and the release of crucial inflation data set to be released today.

Bitcoin witnessed wild swings in the recent sessions rising from 67K in the beginning of this month to a 72K and again falling back to 66K. While the long term trend still points to the bullish side, some analysts anticipate the formation of a local top near the 72K level. Let's analyze how BTC could react to this event and where the price may lead.
Can Bitcoin Recover Like Earlier After the Event?
A user on X (Twitter) back tested the price movements in this year before and after the FOMC and found that the BTC experienced a price dump before the event and has recovered it quickly post the event.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">this is a scam dump.<br><br>there have been 4 FOMC&#39;s in 2024<br><br>every single one of them had the same scam dump<br><br>BTC dumped 10% in the 48 hours before all of them <br><br>on FOMC day it recovered the entire move<br><br>the market always prices in overly bearish statements, then reverses <a href="t.co/oFa801csND">pic.twitter.com/oFa801csND</a></p>&mdash gumshoe (@0xGumshoe) <a href="twitter.com/0xGumshoe/status/1800460029851746326?ref_src=twsrc^tfw">June 11, 2024</a></blockquote> <script async src="platform.twitter.com/widgets.js" charset="utf-8"></script>

In his tweet, gumshoe mentioned that there have been 4 FOMC's in 2024. Bitcoin price dropped nearly 10% just a day or so before the event. However, on FOMC day it covered the entire move. He named it a scam dump as the BTC price fell before the event, manipulating the short term traders and then recovered back.

Bitcoin Price Retraces 50-Day EMA Over 1-D Timeframe
Bitcoin seemed to be stabilizing near the 50 day Exponential moving average after a sharp crash yesterday. The long term trend outlook still lies on the bullish side which may attract the investors at the discounted price.

Moreover, the key EMA of 50 days may act as a dynamic support and try to prevent further downfall. the short term trend points to be range bound with the 66K as the support and 72K as the resistance.

Now, until the BTC hovers in the range it may continue to remain in a short term sideways trend. The breakout or breakdown of the range may indicate a clear trend.

Conclusion.
Bitcoin price dropped yesterday, revisiting the $66,000 mark amid expectations of a Federal Reserve meeting and key inflation data. Despite the recent price correction, the long-term outlook seemed to be bullish. A Twitter analysis suggests a pattern of pre-FOMC price drops followed by quick recoveries.

Currently, Bitcoin is hovering near the 50-day EMA, which could serve as support. the short term trend outlook suggests a range-bound between 66K and 72K. A decisive break from this range will likely set the next clear trend.

Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.