BTC/USD Forecast Today 18/09: Dips Before FOMC (Video)

(MENAFN- Daily Forex)

• Bitcoin did initially try to rally during the trading session on Wednesday, but we have given back gains near the $117,000 level, an area that has been important more than once.
• And really, with that being the case, I think you've got a situation where traders are looking at this through the prism of a market that has been a little bit noisy.
• And with that being said, I think you've got a situation where the fact that the FOMC interest rate decision press conference and statement all come later in the day, it's not a huge surprise to see a certain amount of hesitation or perhaps even liquidation in order to get away from the market and see what the Federal Reserve is going to do.

A lot of retail Bitcoin traders have no idea that the Federal Reserve has a major influence on Bitcoin. It always has. It's kind of ironic because Bitcoin was essentially invented to get away from fiat currencies. And now it's driven by central bank policy.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money The Fed Will Matter

Why is this? Well, it's because Wall Street has its hands in Bitcoin. So, Bitcoin is going to behave like every other Wall Street asset, like it or not. At this point, if Wall Street thinks that the Federal Reserve is going to be tighter than anticipated over the next six months or so, that causes panic and that probably has Bitcoin selling off.

On the other hand, if the Federal Reserve looks like they are going to cut two more times later this year and not in a panic, that could be reason enough for Bitcoin to rally and head towards the $120,000 level. This is a market that's been very choppy and noisy as of late, but it is worth noting that recently we have formed a lower low.

EURUSD Chart by TradingView

Now the question is, are we going to form a lower high? I think we might know the answer to that in the next few days.

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