Finding Bitcoin’s True Point of Pain, Why Sub $30K Seems Likely

Bitcoin maintains its bullish short-term trajectory into the U.S. Federal Reserve FOMC meeting, suggesting the downtrend might be losing strength. BTC investors have feel the pain in the last weeks, as the cryptocurrency displays a high correlation with the U.S. stock market. Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC As of press time, BTC trades at $38,301 with a 2.3% profit in 24-hours. Data presented by Joe Orsini, Director of Research for Eaglebrook Advisors, Bitcoin has historically experienced a positive performance in terms of percentage on FOMC announcement days. As seen below, the current FED Chair Jerome Powell’s administration has boosted the price of BTC as much as 20% during these days. In addition, the chart shows that the BTC percentage change in the daily chart it’s typically moderate during these events. Probably due to the market already pricing in any potential announcements. With the exception of April 2020, every FOMC meeting is followed by moderate price swings on these timeframes with the largest downside change near 5%. If Bitcoin remains on its current trend, it could score yet another bullish post FOMC trading day. However, when the current Bitcoin drawdown is compared to that of April 2020, and July 2021, BTC seems ready for further losses. On the latter periods, BTC dropped below 60% and 50% before a significant price reversion. On the contrary,...