The BTCUSD pair is likely to form an ascending equidistant channel in the near future, but it is currently trading lower. Technically, the price is poised to retest the $87,400 support level with renewed downside momentum.
Today’s Federal Reserve (Fed) meeting could serve as a catalyst for this move. If the US central bank decides to cut rates while maintaining a hawkish stance, meaning that persistent inflation may slow the pace of further policy easing, Bitcoin is projected to drop or, at the very least, consolidate.
Current borrowing costs in the US, despite a potential December cut, remain elevated. Under these circumstances, the market loses its risk appetite and favors safer assets like American Treasury bonds.
If the Fed leaves rates unchanged, BTC will drop sharply amid turmoil. This may catch investors off guard, forcing them to run for security. Thus, a huge Bitcoin sell-off could be expected.
The ultimate recommendation is to sell BTCUSD if the Fed sounds hawkish. Profits should be taken at the level of $87,400. Stop Loss could be set at $95,200.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
