Bitcoin Price Steady Ahead of FOMC Meeting Minutes; Technicals Suggest a Potential Rally

Remember the rising trendline I pointed out on bitcoin price yesterday? Well, support is still holding. By connecting the lows of March 13, March 16, April 15, April 21, and May 25 on the daily time frame, it can be seen that BTCUSD is still trading above the trendline. With the FOMC meeting due later today at 7:00 pm GMT, can bitcoin price sustain its gains?

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While the consensus is for the FOMC to keep interest rates steady between 0.00% and 0.25%, the meeting could still spark some volatility. There are speculations that Fed Reserve Chairman Powell could sound optimistic about the economy especially given the better-than-expected NFP report last week. If this turns out to be the case, BTCUSD could trade lower on dollar strength. A close below the low of June 7 at $9,356.00 could mean that there is more downside potential ahead. Bitcoin price may soon then fall to near-term support at $8,654.00 where it bottomed on May 11 and May 25.

A closer look at the 1-hour time frame suggests that there is more upside potential ahead of BTCUSD. The cryptocurrency has recently made higher lows after a series of lower lows which has allowed for an inverse head and shoulders to form. A strong close above the neckline resistance at $9,832.30 could mean that there may be enough buyers for BTCUSD to rally to its June 1 highs at $10,429.26.

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