Pause in Decline Above Strong Support Area, Awaiting Federal Reserve Comments for Direction

Bitcoin managed to rebound above $63,000 on Wednesday morning following a pullback from its recent peak, finding support just above the crucial Fibonacci level at $60,340 (38.2% retracement of the rally from $38,501 to $73,839) and the symbolic $60,000 mark.

Analysis of the daily chart indicates a heightened risk of further downside, with negative momentum gaining strength, the RSI dipping below the neutral zone, and the 10/20-day moving averages showing a bearish alignment. Weekly indicators also signal overbought conditions, with the formation of a potential reversal pattern.

Under this scenario, any minor upward movements are likely to be met with resistance around the $65,500-$70,000 zone, corresponding to the broken Fibonacci levels at 23.6% of the rally from $38,501 to $73,839 and 38.2% of the subsequent drop to $60,688. This would maintain the dominance of near-term bearish sentiment, with a potential revisit of the $60,340 and $60,000 levels. A breach of these levels could pave the way for a deeper correction, targeting $56,170 (50% retracement of the rally from $38,501 to $73,839) and $55,293 (the rising 55-day moving average).

Alternatively, a sustained break above the $65,700 zone might signal the end of the corrective phase, although further upward momentum would be needed to confirm this.

Attention now turns to the conclusion of the Federal Open Market Committee’s two-day policy meeting, where no changes to policy are expected. However, market participants eagerly await economic projections and comments from Fed Chair Jerome Powell for fresh insights and potential market-moving signals.

Res: 65500; 65712; 67264; 68441

Sup: 62264; 60340; 60000; 56170