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Cryptocurrency Market Sees Stability: Bitcoin Maintains $27K, XRP, ADA, DOGE Show Minor Movement

Sep 21, 2023 at 10:01 am

In anticipation of imminent central bank policy decisions in the U.S., Switzerland, the U.K., and Japan, all major financial markets have adopted a cautious stance, according to an analyst's assessment. Bitcoin, for its part, maintained its position above the $27,000 mark during the early European trading hours on Wednesday. The broader cryptocurrency market demonstrated minimal movement, with traders attributing this stability to the looming central bank policy announcements.

Bitcoin's price encountered resistance at $27,400 earlier in the day, struggling to surpass the 50-day moving average. Over the last 24 hours, ether (ETH) saw a marginal decline of 0.2%, Binance Coin (BNB) dropped by 0.6%, while both Cardano's ADA and Dogecoin (DOGE) remained relatively unchanged.

The Bitsday Market Index (BMI), a composite measure of numerous tokens, experienced a modest increase of 0.44%. Traders appear to be exercising caution, holding off on significant capital deployment until after the central bank interest-rate decisions in the coming days. This prudent approach may be the underlying cause of the current market stability, as noted by Alex Kuptsikevich, a senior market analyst at FxPro.

Kuptsikevich stated, “All financial markets have taken a wait-and-see approach ahead of monetary policy decisions in the U.S., Switzerland, the U.K. and Japan,” reiterating his bearish stance. The Federal Reserve is set to reveal its rate decision at 14:00 ET (18:00 UTC) on Wednesday, followed by the Bank of England at 12:00 BST (13:00 UTC) on Thursday. Switzerland and Japan will also announce their respective rate decisions on Thursday and Friday.

Examining the technical chart, Kuptsikevich suggested a bearish outlook for Bitcoin, emphasizing that the corrective bounce has concluded, as the price dipped below the moving averages, and the short-term oversold condition has been resolved.

In contrast, analysts at the crypto services platform Matrixport anticipate a bullish shift in crypto markets for the fourth quarter, drawing on historical seasonality. According to them, Q4 historically represents Bitcoin's strongest quarter, boasting an average return of +35% over the past nine years. In light of this historical trend, Matrixport analysts expressed the possibility of Bitcoin reaching $37,000 by the end of the year.

Read more: Robinhood's Crypto Wallet Now Supports Bitcoin and Dogecoin Storage

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