Bitcoin technical analysis: Markets await FOMC decision

Ahead of the FOMC rate decision, markets were all over the place, as traders largely sat on their hands and awaited the release the Fed’s policy statement and hear from Chairman Kevin Warsh. Still disappointed from yesterday’s news that the CLARTY Act, a digital-asset market-structure bill, failed to clear the threshold required to advance to full Senate consideration, crypto traders were not in the mood to buy the dip. But what are the charts telling us?

Bitcoin technical analysis

Well, the chart of Bitcoin is not looking particularly promising after it ended weeks of consolidation with a breakdown yesterday. The clue for the breakdown came when bitcoin made a failed attempt to break higher in early September when that key $80K-$82K resistance held and that triggered some unwinding of longs, leading to an eventual drop below support near $76.2K. This level was being tested now from underneath at the time of writing.

Yesterday saw Bitcoin completely give up Monday’s entire gains and some. At one point on Monday, it looked like the cryptocurrency was about to stage a breakout when it rallied above $79K, but here it ran into some resistance later on in that session, leading to a pullback from the highs.