The cryptocurrency market has continued its poor start to the week, with Bitcoin falling below $19k ahead of another FOMC meeting.
The cryptocurrency market performed poorly last week, losing its $1 trillion market cap peg. The poor performance has now spread into the new week, with the broader market losing over 5% of its value over the past 24 hours.
As a result of the poor performance, the total cryptocurrency market cap could drop below the $900 billion mark for the first time this month.
Bitcoin, the world’s leading cryptocurrency, has performed poorly in recent weeks. At press time, bitcoin is trading at $18,954, down more than 4% in the past 24 hours.
Major cryptocurrencies are underperforming ahead of another important FOMC meeting on September 20 and 21.
The market is expecting interest rates to rise by another 75 basis points, a move that could see bitcoin, the crypto market and the broader financial market underperform.
So far this year, the FOMC raised federal funds rates by 25 bps in March, followed by 50 bps in May, and 75 bps in its June and July meetings. Thus, taking the current policy rate to 2.25-2.5%.
prime level to watch
BTC/USD 4-hours chart is in negative territory as bitcoin has underperformed over the past few hours. The MACD line is in the negative zone for the past one week and remains there. Therefore, it shows that the bears are in control.
The 14-day Relative Strength Index of 39 suggests that Bitcoin could enter oversold territory if the bearish momentum continues.
If the downside sentiment does not improve, BTC could decline below the $18,713 support before the end of the day.
Bitcoin could suffer further losses ahead of the FOMC meeting, falling below $18k for the first time in two months.
The bulls are likely to gain control of the market in the coming hours and propel BTC above the $19,500 resistance area.
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