Analyst Outlines Bitcoin Trading Strategy Ahead of September FOMC
As the Federal Reserve prepares to announce its policy on September 17, trader Nik Patel from Ostium Research has outlined a detailed strategy for navigating Bitcoin's price movements. His plan revolves around key resistance levels at $117.5k–$120k and critical support at $112k.
Trading Strategy Ahead of FOMC
- A strong weekly close near $115.3k keeps Bitcoin above $112k, crucial for short-term bullishness.
- If price falls below $112k, it may revisit July's lows around $107k or even drop to $99k.
- An upward move past $120k could lead to testing all-time highs, with $123k as a significant resistance.
Nik suggests a conditional bias:
- Long Side: Look for a sharp dip to $113.5k early in the week; target rebounds to $117.5k and $119k.
- Short Side: Consider shorting above $119k pre-FOMC and add positions below $117.5k post-FOMC, aiming for $112k.
Currently, BTC is trading around $115k, with analysts emphasizing the importance of reclaiming $114k for momentum. The market anticipates a 25 basis point rate cut by the Fed, which could impact Bitcoin's movement.
The outcome depends heavily on Chair Jerome Powell's guidance and the updated "dot plot," which will influence future rate cuts. Key positioning includes monitoring three-month annualized basis and open interest between Bitcoin and altcoins.
In summary, bulls aim for a dip that holds $112k and recovers to $119k–$123k, while bears look for a peak around $119k–$120k followed by a drop below $117.5k.
At press time, Bitcoin was priced at $115,427.
