Bitcoin price dives pre-FOMC amid warning $17.6K low was not the bottom

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Bitcoin (BTC) fell to its weekly lows on August 17th on Wall Street as the Fed’s highly anticipated comments opened up an unstable risky asset.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The dollar rises as the minutes of the Federal Reserve meeting are due
Data from Cointelegraph Markets Pro and TradingView tracked a daily decline of more than 2% in BTC/USD, which reached $23,325 on Bitstamp.

The pair has already shown signs of weakness, and slipped further as US equities began trading, hours before the latest FOMC meeting minutes.

Although it does not include a decision on interest rates, the meeting was hinted at to give insight into the Fed’s thinking regarding the next rate adjustment scheduled for September.

“Important event tonight with the FOMC meeting minutes, from which one can get information on whether the Fed will be hawkish or pessimistic,” Cointelegraph contributor Michael van de Poppe summed up in his latest Twitter update.

“I don’t think it would have a huge impact, however, crypto tends to give it a lot of value, and therefore a lot of volatility.”
Stocks encountered significant resistance in line with the cryptocurrency during the week, leading some concerned sources to continue to anticipate another major bounce across the board.

Justin Bennett, founder of Crypto Academy’s educational platform Crypto Academy, warned that the S&P 500 has been copying behavior since just before the 2008 global financial crisis.

“This is amazing. The S&P 500 simulates the crash of 2008. The comparison chart to date since ATH is nearly identical,” he commented.

“The bottom is not meant for stocks or cryptocurrencies.”
A tell-tale sign of the day came in the form of a rally in the US Dollar, as the US Dollar Index (DXY) seeks to attack resistance in place throughout the month of August.

“$DXY could be on its way to 112-113 after faking under 105.50. Bennett added that this will affect stocks and cryptocurrencies.

US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView
Buyers Eye Lowest Quotes
On the shorter time frames, the trend in Bitcoin was rapidly losing steam with the bid support in the Binance order book dropping.

Related: Bitcoin price sees strong rejection at $24.5K as traders doubt strength

On-chain monitoring resource Material Indicators caught the action, concluding that “even if we get another pump, we still think the bear market rally is losing momentum.”

The upside target could come in the form of a 100-day moving average, as explained in a separate post, at $24,544 at the time of writing.

Commentator Matthew Hyland concluded, “The warning of this collapse of Bitcoin has been in the past few days.”

“The chassis has generally turned weak lately. The market only seemed to show its first signs of life last week. It seems that this is short-lived.”

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