In the last 24 hours, bitcoin has found support at $38,200 and is currently trading in a sideways action. Weekends often result in sideways action since there’s no big institutional involvement, Next Wednesday, however, will be the important FOMC announcement regarding interest rate hikes in the US. Markets are eagerly awaiting the outcome of this decision. If the expected 0.25% rate hike is announced, this should be very favorable for the markets. Resistance for BTC is still at the $42,400 level, and if the $38,200 support level has to break, the next level of support is at $36,400 and $34,000 respectively.
The USDT Dominance chart is also showing sideways action, moving in a range between the support of 4.5% and resistance at 4.75% Fibonacci retracement levels. We want to see the dominance drop, and to see a break of the daily support line coming from November 2021.
With the current sideways trading action, we get a sense that everybody is waiting for next Wednesday’s FOMC outcome before we see any massive moves in the market.