Bitcoin Price Plunges Pre-FOMC Amid Warning $17.6K Low Was Not the Bottom

Bitcoin (BTC) slumped to weekly lows at the Wall Street opening on Aug. 17 as forthcoming comments from the Federal Reserve left risk assets insecure.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Dollar rises as Fed minutes expire

Data from Cointelegraph Markets Pro and TradingView tracked a more than 2% daily decline in BTC/USD, reaching $23,325 on Bitstamp.

Already showing signs of weakness, the pair continued to slide as US stocks began trading hours before the Federal Open Markets Committee (FOMC) was due to release the minutes of its last meeting.

While no decision on interest rates was made, the meeting was intended to provide insight into how the Fed feels about its next interest rate adjustment in September.

“The important event tonight with the FOMC minutes, allowing information to be received as to whether the FED is going to be hawkish or dovish,” Cointelegraph employee Michaël van de Poppe summarized in his latest Twitter update.

“I don’t think it will have a huge impact, but crypto tends to give it a lot of value and therefore a lot of volatility.”

Stocks saw strong resistance in line with crypto throughout the week, with some concerned sources continuing to forecast a further major retracement across the board.

Justin Bennett, the founder of crypto education platform Crypto Academy, warned that the S&P 500 was copying behavior from just before the global financial crisis of 2008.

“This is mind-blowing. The S&P 500 mimics the 2008 crash. Even the timing since the ATH is almost identical,” he said commented on a comparative chart.

“The bottom is NOT for stocks or crypto.”

A telltale sign on the day came in the form of an advancing US dollar, with the US dollar index (DXY) attempting to attack resistance in August.

“$DXY could be heading for 112-113 after the fakeout below 105.50. That’s going to weigh on stocks and crypto,” Bennett added.

US Dollar Index (DXY) 1 Day Candlestick Chart. Source: TradingView

Buyers look at lower bids

On shorter timeframes, the trend on Bitcoin also quickly lost momentum as bid support pushed the Binance order book down.

Related: Bitcoin Price Sees Firm Rejection At $24.5K As Traders Question Strength

On-chain resource monitoring Material indicators captured the action, concluding that “even if we get another pump, we still believe the Bear Market Rally is losing momentum.”

An upward target could come in the form of the 100-day moving average, a separate post explainedlying at $24,544 at the time of writing.

“I have been warning about this Bitcoin outage for the past few days,” commentator Matthew Hyland concluded.

“The structure has generally changed slightly lately. The market appeared to be getting its first signs of life last week. That seems short-lived.”

BTC/USD buy and sell levels (Binance). Source: Material Indicators/Twitter

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