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Title : Bitcoin price dives pre-FOMC amid warning $17.6K low was not the bottom

Aug 18, 2022 05:20AM ET

By: AnalysisWatch

The dollar is rising ahead of the Fed minutes.

Data from Cointelegraph Markets Pro and TradingView showed a daily decline of more than 2% in BTC/USD, which hit $23,325 on Bitstamp.

The pair, which was already showing signs of weakness, plunged further as U.S. stocks began trading, hours before the Federal Open Markets Committee (FOMC) released the minutes of its latest meeting.

While not an interest rate decision, the meeting was called to give an idea of the Fed's thinking on the next rate adjustment, scheduled for September.

Cointelegraph contributor Michal van de Poppe summed it up in his latest Twitter update: "The important event tonight is the FOMC minutes, through which you can get information on whether the Fed is going to be hawkish or dovish."

"I don't think it will have a massive impact. However, cryptocurrencies tend to give you a lot of value and therefore a lot of volatility.

The stock had hit major resistance in line with crypto during the week, leading some concerned sources to continue to forecast another major pullback across the board.

Justin Bennett, the founder of cryptocurrency education platform Crypto Academy, warned that the S&P 500 was mimicking the behavior that preceded the 2008 Global Financial Crisis.

"This is mind-boggling. The S&P 500 is mimicking the 2008 crash." Even the timing since the ATH is almost identical, "he commented on a comparative chart.

"There has been no bottom in stocks or cryptocurrencies."

A telling sign on the day came in the form of a US dollar advance, with the US dollar index (DXY) trying to attack resistance in place throughout August.

Buyers are targeting lower bids.

On shorter time frames, the trend in Bitcoin was also quickly losing steam as bid support moved lower in the Binance order book.

Chain monitoring resource Material Indicators caught the action, concluding that "even if we get another pump, we still believe the bear market rally is losing momentum."

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