WATCH BEFORE TOMORROW (Fed Meeting)!! Bitcoin News Today & Ethereum Price Prediction!

Welcome back to the Crypto Channel: Ethereum Faces Resistance, Bitcoin Consolidates

Welcome back to the Crypto Channel, everyone! My name is Josh, and in today’s video, we’ll be discussing the current state of Ethereum and Bitcoin in the crypto market. Ethereum is currently running into a crucial line of resistance, while Bitcoin is consolidating in a new pattern in the short term. Additionally, we have an upcoming Fed meeting that could heavily affect prices in the short term. Let’s dive into the details.

The Impact of the FOMC Meeting on the Market

First, let’s talk about the upcoming FOMC meeting, also known as the Fed meeting, happening tomorrow. These meetings are where the Federal Reserve changes the underlying interest rate, also known as the Fed funds rate. These changes can have a significant impact on the market in the short term.

Currently, the Fed funds rate is sitting at 5.5%, which is on the high end of the target range of 5.25% to 5.5%. The market is pricing in a 97% chance of interest rates staying the same with tomorrow’s Fed meeting. The remaining 3% is expecting a rate cut of 25 basis points.

While it’s unlikely we will see a rate cut tomorrow, unexpected outcomes can lead to increased volatility in the markets. A rate cut could result in a massive pump across the crypto and stock markets, while a 25 basis point hike could lead to a short-term dump. Looking ahead, interest rates are expected to stay where they are for the next few months, with a potential rate cut in mid-2024.

Bitcoin Analysis

Now let’s turn our attention to Bitcoin. On the weekly chart, we still have a significant area of resistance between 36k to 38k. The daily chart shows that the RSI is overbought, indicating a potential pause in the short term. The MACD is losing some bullish momentum, leading to choppy sideways price action.

However, the overall trend and momentum on the daily timeframe remain bullish. In the short term, Bitcoin is forming a horizontal parallel channel, which could turn into a bullish flag pattern if we confirm a breakout above the resistance level at 34.9k. This breakout could lead to a price target of 38.4k, representing an 8-10% move to the upside.

It’s important to note that even if we see a breakout, we cannot ignore the major area of resistance on the weekly timeframe between 36k to 38k. Therefore, caution is advised when considering potential price targets.

Ethereum Analysis

Turning to Ethereum, on the 3-day chart, we have an active falling wedge pattern with a price target of 2.1k. On the daily chart, Ethereum is running into an area of resistance between 1850 to 1890, with another resistance zone between 2k to 2030. The MACD is still bullish, but we have lost some momentum in the short term.

Additionally, Ethereum is forming a broadening wedge pattern with a price target of 1980. This pattern remains active as long as we don’t see a confirmed break below 1730. The current resistance level at 1820 needs to be broken for the price to continue towards the volume profile-based resistance at 1890. A breakout above 1.9k could quickly push the price towards 22k.

Similar to Bitcoin, Ethereum is also experiencing choppy sideways price action in the short term. A breakout above the resistance level at 1850 could confirm a bullish flag pattern, potentially leading to a price target of 40k.

Frequently Asked Questions

1. What is the FOMC meeting and how does it affect the market?

The FOMC meeting, also known as the Fed meeting, is where the Federal Reserve changes the underlying interest rate. These changes can have a significant impact on the market in the short term. A rate cut can lead to a pump in the market, while a rate hike can result in a short-term dump.

2. What are the current expectations for interest rates in future Fed meetings?

Based on market expectations, interest rates are expected to stay where they are for the next few months. A potential rate cut is anticipated in mid-2024, which could lead to a more bullish market.

3. What are the key resistance levels for Bitcoin and Ethereum?

For Bitcoin, the key resistance levels are between 36k to 38k on the weekly timeframe. Ethereum is facing resistance between 1850 to 1890 and 2k to 2030 on the daily timeframe.

4. What are the potential price targets for Bitcoin and Ethereum?

Bitcoin could see a price target of 38.4k if a breakout above 34.9k is confirmed. Ethereum has a price target of 2.1k based on the falling wedge pattern and 1980 based on the broadening wedge pattern.

5. How can I profit from choppy sideways price action?

You can learn how to profit from choppy sideways price action by watching the video in the bottom left of your screen. It provides valuable insights and strategies for making money during periods of consolidation.

Remember to stay updated with real-time market updates by following me on Twitter. The link is provided in the description and pinned comments.

That’s all for today’s comprehensive analysis of the crypto market. I hope you found this article engaging and informative. Stay tuned for more insights in the next video!