Over the past few days, the price of Bitcoin has been fluctuating primarily due to macroeconomic concerns. Following “The Merge,” the benchmark cryptocurrency was rejected for north of $20,000 and appears to be headed for instability throughout today’s trading session.
The U.S. Federal Reserve (Fed) will announce its impending interest rate hike at its Federal Open Market Committee (FOMC) meeting later today. The crypto market is expected to become more volatile before this important event, as it has in the previous month.
This is the equities chart, it rejected off level above and looks like it wants lower$BTC is hovering at support for near $18k-$19k for the 5th time— Rager 📈 (@Rager) September 20, 2022
It's not looking so good right now but maybe we get a bounce again…
I'm flat currently and will keep an eye on this pic.twitter.com/u7B6WXFlQe
There may be more bad news in store for the leading digital asset as the overall cryptocurrency market seeks to recover its momentum and Bitcoin struggles to maintain its position above the $19,000 mark.
When Will BTC Price Witness a Rebound?
Josh Rager, a crypto trader, and analyst emphasized this in a tweet on September 20 and said that “it’s not looking so good right now” for Bitcoin, claiming that “it rejected off level above and looks like it wants lower” while referencing the S&P 500 Index stocks chart.
As Rager said, the chart shows that the S&P 500 has rejected the critical resistance level at $4,310 during the past few days and appears to be heading down.
He thinks Bitcoin is in peril because it has a negative historical correlation with the S&P 500 and is hovering at support at near $18k-$19k for the 5th time. Rager, who is currently flat, does express some optimism, saying, “Maybe we get a bounce again,” and adding, “I’m flat, but I’ll keep an eye on this.”
Nevertheless, Rager predicted that the largest cryptocurrency would see a significant rebound in 2024, immediately following the halving event, and cautioned investors to be alert and take the market week by week. Rekt Capital, a different cryptocurrency trading expert, predicts that Bitcoin will bottom in the fourth quarter of 2022 after considering the token’s performance 517–547 days prior to its previous halving occurrences.