Bitcoin snaps impressive 8-day winning streak

Bitcoin (BTCUSD), the largest cryptocurrency in the world, exhibited a neutral to bearish trend during the early New York trading session on Wednesday after a decline in the previous session. The week started on a positive note for Bitcoin, as it reached a fresh six-week high close to $76,000 in the early Asian session on Tuesday before experiencing a slight pullback.

The cryptocurrency has declined for the second consecutive day due to uncertainty regarding central bank actions. Global markets are still grappling with unclear directions on interest rates, which is likely contributing to near-term volatility. As of this writing, Bitcoin is trading below $72,000.

Traders await Fed signals for next steps

The March Federal Open Market Committee (FOMC) policy statement is scheduled for release at 18:00 GMT, followed by Fed Chair Jerome Powell’s press conference at 18:30 GMT. The outcomes of today’s Fed meeting and Powell’s comments will be crucial and essential in terms of further educating crypto markets in terms of direction, with their discussion on policy likely to influence market volatility. Investors are particularly focused on any revisions to the US central bank’s economic projections and whether the outlook for two rate cuts this year remains intact.

$BTCUSD: Short-term technical outlook

From a technical perspective, even with the recent pullback, the short-term momentum appears to remain neutral to bullish, as the price is holding above the 20-day and 50-day moving averages. The four-hour chart indicates that Bitcoin has been experiencing a modest bullish trend recently, particularly after finding robust buying support near the $65,000 demand zone.

However, for further gains, Bitcoin needs to break above the $76,000 resistance level. A sustained move above this barrier could propel the price toward the next resistance at $80,000. On the downside, sellers will monitor any drop below $70,000 closely, as a close below this key level could trigger a sharper decline toward the $65,000 demand zone.

Warning! This material is not intended as investment advice. Past performance data does not guarantee future profits. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction in securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.