Bitcoin Faces Brief Correction as FOMC Decision Looms

• At the time of writing, Bitcoin is trading at $42,572, down 2.01% in the last 24 hours.
• If the price manages to go below $42,320 then it will likely test $41,970 support level.

Marathon Digital Holdings Chairman and CEO Fred Thiel said on a recent edition of The Pomp Podcast that the impending halving puts Bitcoin in a better position for a greater rate of appreciation. Especially when compared with gold. Also, it should make things more stable when the market isn’t doing well.

In comparison to the gold market, the supply of Bitcoin will expand at a slower rate. According to him, this will significantly affect its pricing. Historically, BTC prices have surged in response to halvings, offsetting the income losses experienced by miners. Nonetheless, Thiel brought attention to the launch of Bitcoin ETFs as well.

All Eyes on FOMC Decision

The much anticipated FOMC decision might set the framework for any subsequent shifts in the cryptocurrency market, so investors are on high alert. 

The CME FedWatch Tool predicts that the Fed will likely leave the interest rate unchanged with a 97.9% likelihood. Particularly, investors will be watching Fed Chair Jerome Powell’s speech attentively for indications about the nation’s economic health and any measures by the central bank.

At the time of writing, Bitcoin is trading at $42,572, down 2.01% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 2.80%. After the recent bullish rally, the price found resistance at $43,740 level.

Source: CoinMarketCap

If the price manages to go below $42,320 then it will likely decline further to test $41,970 support level. On the other hand, if the price manages to go above $43,050 level then the price will likely climb further to test $43,740 resistance level.

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