Bitcoin depreciated at today's price of $42,033.46 down 2.33%. The cryptocurrency average fell after the United States central bank (The Fed) announced that interest rate cuts would not occur in March 2024.
Reporting from Coinmarketcap, Bitcoin fell 2.06%, Ethereum fell 3.16%, BNB fell 2.73%, a sharp decline occurred in Solana with 7.21% today.
Reporting from CNBC, the United States (US) central bank, The Federal Reserve (The Fed), has again held its benchmark interest rate at the level of 5.25-5.50%. The Fed also indicated that it would not cut its benchmark interest rate next March. The Fed's next meeting will be held on March 19-20 2024.
In its official statement, the Fed said that cutting interest rates was not feasible as long as they were not sure if inflation would move towards 2%.
BTCUSD D1 timeframe
BTDUSD formed a reversal pattern in this time frame in the last three days with the price tending to form a bearish candle with a lower low. However, the decline to date is still stuck near the middle band line which may become dynamic support. Here the Bollinger band appears to be narrowing which may mean the market is in low volatility.
BTCUSD started moving up on January 23 from around $38569 and reached a high of $43859 at the end of January. In this time frame the MA 50 forms a flat channel above the middle band line giving a sideways signal, while the MA 200 below the lower band forms an upward channel, which may give a long-term signal. Another indicator, RSI, shows level 47, which means the price is below the downtrend level.
The Fed's decision to postpone the cut-rate seems to have caused cryptocurrencies to fall, including Bitcoin. However, Bitcoin's decline is still quite moderate and has not crossed its previous low of around $38k.