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Market alert: Bitcoin prices vulnerable to event risk, CAC40 shrugs off the Fed

OMC rate decision remains a major event risk for speculative assets and Bitcoin retreats CAC 40 price action highlights critical resistance formed by key technical levels.

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.

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

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

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This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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