Bitcoin (BTC) held $27,000 into Sept. 20 as the key macroeconomic date of the cryptocurrency trading week arrived.
Market “set to accommodate” BTC price volatility
Data from Cointelegraph Markets Pro and TradingView showed the BTC price focus shifting upward compared to the week prior.
Crypto markets showed conviction in the decision on interest rates by the United States Federal Reserve. The Federal Open Market Committee (FOMC) was due to announce its latest changes at 2 pm Eastern Time on the day.
As Cointelegraph reported, expectations almost unanimously favored rates staying at current levels, with the odds still at 99% at the time of writing, per data from CME Group’s FedWatch Tool.
“The market is pricing a 99% probability that the Fed are on hold at this meeting. And the data is conducive for that, core CPI inflation is now running at the Fed’s target on a 3-month annualized basis,” financial commentator Tedtalksmacro told X subscribers in part of his latest analysis.
“Potentially the first meeting where the Fed recognize that inflation is trending on the right path…”
Despite this, the event was tipped to deliver short-term volatility.
Analyzing the state of the BTC/USD order book on the largest global exchange, Binance, monitoring resource Material Indicators said that liquidity around the spot price was noticeably thin.
“If one thing in particular stands out, it’s that liquidity is thinly distributed through the range,” part of its commentary stated.
“We could see some walls go up, but for now it appears the order book is set to accommodate more volatility.”
Material Indicators added that the subsequent speech and press conference from Fed Chair Jerome Powell should lead to further “spicy” BTC price action.
An accompanying chart showed some bid-side liquidity parked at $26,650, while substantial bids were still only at $25,000. To the upside, sellers lay in wait at $27,450 — the local BTC price high from September.
Bitcoin traders eye key levels
Continuing, others hoped for some range levels to be challenged as part of the FOMC reaction.
Related: Bitcoin Bollinger Bands hit key zone as BTC price fights for $27K
“Good chance we take out some stops today during the volatility,” popular trader Daan Crypto Trades suggested.
Fellow trader Jelle said that he expected “choppy waters” on Bitcoin, and while scanning broader exchange activity, trader Skew predicted a lively FOMC trading environment.
$BTC Binance Spot
Late asia – early EU shenanigansspot bids $27K – $26.7K key area to bounce from & ask liquidity moving up the book here
FOMC should be fun https://t.co/4nfUA49ipR pic.twitter.com/2gCQ4ia6dD
— Skew Δ (@52kskew) September 20, 2023
Crypto Tony, meanwhile, flagged $26,800 as the line in the sand for Bitcoin bulls to protect.
“This is what I am looking for to remain in my long position. Must hold above $26,800 support zone, or we risk creating a deviation,” he commented alongside his own chart.
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