FOMC Friction Impacts Bitcoin Price, Eyeing Mid-$50K Zone

The price of Bitcoin (BTC) continued to weaken as it approached $60,000 on March 19. Despite volatile conditions, BTC/USD was preparing for a test at $62,000 at the time of writing. The largest cryptocurrency experienced a drop of almost 8% after the daily close due to fresh selling pressure. This downward trend coincided with the upcoming interest rates decision by the United States Federal Reserve on March 20, as well as Japan’s central bank raising rates for the first time in over a decade. There were significant outflows from the Grayscale Bitcoin Trust (GBTC), reaching a record high of $642 million on March 18.

Some market observers believed that Bitcoin was close to reaching a bottom and experiencing a shallow correction, which could present great opportunities for altcoins. Michaël van de Poppe, the founder and CEO of trading firm MNTrading, expressed this sentiment in a recent commentary. He also highlighted a potential bearish divergence on the BTC/USD chart, suggesting that $60,000 could be a reversal point.

Veteran trader Peter Brandt remained optimistic about Bitcoin’s overall strength. He viewed the current correction as a healthy part of a major bull trend. Brandt pointed out a potential head and shoulders pattern on the daily timeframes, and while he warned of a possible dip to $55,000, he believed that BTC/USD would still follow its rising trend.

Despite multiple failed attempts to surpass the old all-time high at $69,000, confidence in the bull market for Bitcoin has not diminished. Investors and analysts remain confident in the cryptocurrency’s long-term growth potential.