- Bitcoin finds resistance at $30,000
- Head and shoulder pattern neckline provides support
- Realized HODL Ratio Suggests Investors May Buy Dip
The main event of trading day is the Federal Reserve Board. Most market participants expect the Fed to raise rates by another 25bp, but what matters is how the Fed communicates its decision.
Dovish rhetoric should be bearish for the USD and bullish for Bitcoin, but hawkish rhetoric will weigh on Bitcoin as the dollar rises.
Bitcoin is struggling at $30,000 ahead of the Federal Reserve’s decision. Horizontal resistance was difficult to overcome and could form a head and shoulders pattern.
If price falls below the neckline of the pattern, albeit imperfectly, it could lead to further weakening. could be support.
Bitcoin Realization HODL Ratio Favors Future Dip Purchases
Also known as the RHODL ratio, it has a simple interpretation. The market is overheating whenever the ratio hits the red band, which means the bullish cycle is over.
Conversely, a bear market should end when it hits the green band and a bull cycle should begin. Bitcoin rose in his early 2023 as the RHODL ratio signaled the end of the bear market.
So the fall as a result of today’s Fed decision should be bought as RHODL has a lot of room until it hits the red area.