:max_bytes(150000):strip_icc()/Term-Definitions_Dutch-tulip-bulb-market-bubble-65b7664ea4bd427d9ae808431c5fa0b4.jpg "Where BTC next $32B as Bitcoin short positions rise to $27,000 average")
This was the Bitcoin bear's biggest decline since the price of BTC fell below $25,000 to hit a three-month low last Monday.
Bitcoin's price outlook took a turn for the worse in August when the cryptocurrency broke below the 2023 uptrend and 200DMA.
However, with the recent downtrend and breakout above the 21DMA, things are looking brighter.
BTC seems to have found a new range of at least $25,000-$28,000.
A break above key resistance at $27,700-$28,500 is needed to return to the year's highs on the charts.
Macro is likely to be the main driver of Bitcoin price this week.
The Fed is expected to keep rates on hold on Wednesday, but could leave the door open for a credible hike this year.
The central bank publishes a new summary of the new economic outlook and the Fed's interest rate review. Both notes will be scrutinized by traders and used to gauge the likelihood of further price hikes in 2023 and any potential price hikes. Reduces 2024. Time
While many investors don't expect a rate hike this year, the Fed's message that a rate hike is possible will make markets less excited about rate cuts in 2024 and beyond, helping to keep U.S. output under the shield of the dollar. .
So while this week's Fed meeting may not provide negative shocks, it probably won't provide much of a boost to Bitcoin, assuming the US dollar and US yields aren't too low.
Bitcoin has historically had a negative correlation with the US dollar and US commodities.
The world's largest cryptocurrency could be in the $25,000-$28,000 range for the next several months.