The crypto market is plunging; the bitcoin price dropped below crucial levels around $26,400 as the FOMC minutes are about to be released. The traders are eagerly waiting for the minutes, and at the same time, the bears and the shorts are successfully dragging the price lower. Moreover, the transcripts of the previous meeting are about to be published in a short while.
Therefore, fine volatility is expected to kick-in within the markets very soon.
The BTC price began to slump in the early trading hours as it failed to hold support at $27,000. However, the probability of the price reclaiming these regions was pretty high during the early trading hours, but that faded as the trade proceeded ahead. Presently, the BTC price is displaying the possibility of maintaining a steep descending trend that may further accelerate a more bearish divergence to reach $26,000.
The BTC price has faced rejection from the 50-day MA levels in the daily time frame since the beginning of the month. However, the 100-EMA levels are trying hard to hold the rally, but the bearish influence is slowly outperforming the bullish attempts.
Hence, the price is further believed to face another rejection from the 100-EMA levels that may drag the price lower to levels close to $25,000, or an extended bearish trend may compel the price to trade below $25,000 in the next 24 to 48 hours.
Although the RSI is plunging, the MACD is displaying the possibility of a bullish crossover. However, the volume continues to remain depleted, which may be a matter of concern at the moment and may weaken the bulls to a large extent.
Therefore, the FOMC minutes are believed to induce significant volatility within the crypto space, and the current descending trend is believed to continue until the tokens reach their respective support levels.