Pre Open US - Cryptocurrency 25 July 2023

Bitcoin and other cryptocurrencies experienced price fluctuations as investors awaited the Federal Reserve's interest-rate decision. Notably, Dogecoin witnessed a significant surge in value as traders speculated on its potential integration into Elon Musk's plans for expanding his X social-media platform.

The U.S. Federal Reserve is scheduled to announce its interest rate decision on Wednesday. The main point of interest is not whether there will be a 25 basis points (bps) increase in the benchmark borrowing cost, but rather whether this hike will signal the end of a 16-month tightening cycle that was partially responsible for the crypto market crash last year.

Interestingly, Bitcoin's performance may not be heavily influenced by the Fed's communication or Wall Street sentiment. Over the past 90 days, the correlation between Bitcoin and stocks has weakened. Nonetheless, it's important to remember that correlations are backward-looking indicators and can change rapidly.

Technically, Bitcoin (BTC) broke the 29700-support level that was holding for one month, taking the price towards the next target at 28000, where the 100MA may also help the price find support there. After that, the 27300 level will be the next support, located at the lower parallel of the actual long bullish channel.