Crypto green days: Major cryptocurrencies are forming topping patterns while the FOMC interest rate hike is just around the corner.
The total crypto market cap and Bitcoin are forming potential topping patterns, while a 75 BPS interest rate hike is expected on Wednesday.
The FOMC interest rate hike
The FOMC interest rate hike is scheduled for Nov. 2, Wednesday, at 2:00 PM EST. The FED chairman Jerome Powell will give a speech at 2:30 to conclude the session.
The FOMC will most likely raise the interest rate for a sixth consecutive time. The expected interest rate hike is 75 BPS. Generally, the market behaves neutrally or positively when the interest rate hike comes out as expected. But bears take over the market if the hike is more than expected.
Topping pattern in Total Crypto Market Cap
The Total Crypto Market Cap is forming a potential head and shoulder pattern with the neckline around $929.40B. The chart shows that the left shoulder and head are already in.
The price, as of writing, stands at $967.12B. It can take the support of the neckline and give a slight bounce to form a right shoulder. The crypto market is expected to bleed if there is a closing below the neckline after forming the right shoulder.
The Double Top in Bitcoin
The price of Bitcoin failed to close above 0.382 Fibonacci level at $20,850 levels. A daily close above this was necessary for Bitcoin to sustain the current rally.
However, as of writing, the Bitcoin chart is forming a potential double-top pattern with the neckline at the $20,000 level. The $20,000 level has proved to be a strong support, not to mention it is also psychological support.
If the interest rate hike is more than expected, Bitcoin may break the $20,000 support. The breach of support will result in Bitcoin visiting $19,000 levels once again.
If the FOMC Interest Rate Hike comes out as expected, there will be some bullish sentiment, or it won’t impact markets significantly. But, if the interest rate hike is 50 BPS, there is a high probability that the bearish patterns might get invalidated, and the market will continue its upward trend.
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