Bitcoin reached a new year-to-date high of $28,865 prior to the FOMC meeting this afternoon. However, it then proceeded to lose both the $28,000 and $27,000 psychological support falling 7.2% in two hours.
Over $224 million has been liquidated from the crypto markets over the past 24 hours, with $170 million in the past four hours alone.
As of press time, Bitcoin appears to be holding around $26,800, which has created a $2,065, or 8%, spread for the day.
The Federal Reserve raised interest rates by 25bps during the FOMC meeting with Chairman Jerome Powell stating, “we no longer expect that ongoing rate increases will be appropriate.” The news indicates that further rate hikes are unlikely throughout 2023.
The crypto community appears to be bearish in the short term following the news, as the decline indicates that Bitcoin has rejected long-term support, turning resistance at the $28,700 level. The lower green horizontal line on the chart below shows where Bitcoin was supported at $28,700 several times throughout the bull run with heavy buying from investors.
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