Bitcoin (BTC/USD), France 40 (CAC) Talking Points:
- FOMC rate decision remains a major event risk for speculative assets, Bitcoin retreats
- CAC 40 price action highlights critical resistance formed by key technical levels
Discover how to identify important levels of support and resistance with price action
It’s another huge week for event risk with the FOMC rate decision and the accompanying press conference once again at the forefront of sentiment.
With market participants gearing up for another 75 basis point rate hike, expectations for the Federal Reserve to be more aggressive have eased, limiting USD strength.
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For cryptocurrency and equities, fundamentals remain key drivers of price action which could further assist in driving both Bitcoin and CAC out of their current range.
CAC Technical Analysis
After failing to break below psychological support earlier this month, CAC bulls have managed to drive prices higher in an effort to rise above the 76.4% retracement of the 2011 -2022 move at 6,275, closing the previous price gap from the 10 – 13 June move.
In order for the uptrend to hold, a break of 6,275 and 6,374 could see the next big level at the June high just below 6,600.
CAC 40 Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Bitcoin Technical Analysis
Meanwhile, Bitcoin prices are currently trading lower after rebounding off the $24,000 handle last week.
If risk aversion or USD strength remains intact, additional selling pressure may drive prices back towards $20,000 with a probable retest of the $18,000 mark coming back into play.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
