Bitcoin price has fallen back to the $74,000 support level after three consecutive days of gains, occurring against a backdrop of cautious investor sentiment ahead of the upcoming Federal Reserve interest rate decision.
Typically, risk assets like Bitcoin benefit when the Federal Reserve cuts interest rates, while they face pressure when the Fed opts to maintain or raise rates in response to stubborn inflation.
It is important to note that the Fed's interest rate decision may have already been priced in by the market, and the current pullback could simply be a breather before the market resumes its upward trend, similar to rebounds seen during heightened macroeconomic and geopolitical uncertainty.
Bitcoin Price Eyes Rebound, Breaks Bullish Triangle
On the daily chart, Bitcoin price has confirmed a breakout from the upper boundary of a symmetrical triangle, which is viewed as a bullish continuation pattern in technical analysis.
Bitcoin price has broken out of a rising triangle pattern on the daily chart — March 18 | Source: crypto.news
Additionally, Bitcoin price has also broken above the super trend line and turned green, indicating that short-term momentum is improving.
Meanwhile, the Relative Strength Index (RSI) has risen to 59, leaving room for further upside, as it has not yet reached the overbought level of 70, where buying pressure typically weakens.
Currently, traders will be watching the $76,000 level, which Bitcoin failed to break during its rally on Tuesday. A breakout above this level could pave the way for a test of the psychological $80,000 mark.
Conversely, if it falls below $73,000, it could lead to a shift in market sentiment and retest the support level near $71,000.
Disclaimer: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.