Bitcoin, Ethereum, and Dogecoin prices drop before Federal Reserve interest rate announcement
Bitcoin saw turbulent trading on Sunday, with prices fluctuating between $85,000 and $82,000. Despite this, the leading cryptocurrency managed to recover some of its losses from the previous week, showing a 2.21% increase. In contrast, Bitcoin faced a significant decline of over 11% in the first quarter, a stark comparison to its average 51% returns. Ethereum, on the other hand, continued to move within the $1,860-$1,930 range throughout the day, experiencing a decrease of over 7% in the past week and an overall quarterly loss of 42%.
Within the last 24 hours, the cryptocurrency market witnessed liquidations totaling over $256 million, with long liquidations contributing $177 million to this amount. Bitcoin’s Open Interest dropped by 2.76% due to these liquidations. However, data from the Long/Short Ratio indicated that 52% of traders were positioned long on Bitcoin, suggesting a tendency to buy into the dip. The overall market sentiment was characterized by fear, as indicated by the Crypto Fear and Greed Index.
On a more positive note, there were some top gainers in the cryptocurrency market over the past 24 hours. BinaryX (BNX) showed a gain of 26.13%, Helium (HNT) increased by 3.38%, and OKB rose by 3.32%. Despite these gains, the global cryptocurrency market capitalization decreased by 2%, standing at $2.71 trillion.
Looking at traditional markets, stock futures were down on Sunday evening. The Dow Jones Industrial Average Futures fell by 156 points, or 0.37%, while S&P 500 and Nasdaq 100 Futures dropped by 0.45% and 0.51%, respectively. This followed a week of losses, with the Dow Jones Industrial Average and the S&P 500 declining by 2.38% and 0.75%, respectively.
Investors are now eagerly awaiting the Federal Reserve’s policy meeting scheduled for the upcoming week. According to the CME FedWatch tool, the central bank is expected to maintain unchanged interest rates.
In the midst of market fluctuations, well-known cryptocurrency analysts have shared their insights. Ali Martinez emphasized the $81,400 support level for Bitcoin, noting that staying above it could sustain the cryptocurrency’s upward trend. Additionally, Martinez highlighted an ascending triangle pattern for Bitcoin, suggesting an 8% price increase upon breaking out of this pattern.
Another prominent market commentator, Michaël van de Poppe, expressed optimism for a “strong and green” week ahead, provided there are no major market downturns on Monday. This sentiment reflects the anticipation and uncertainty surrounding upcoming market movements.
