Cryptocurrency Bitcoin gave up its initial gains on Wednesday because the digital asset failed to push past its 50-day moving average while investors waited for the US Federal Reserve interest-rate announcement and major technology earnings.
On Bitstamp, Bitcoin touched $81,687 temporarily before dropping back to near $80,297. The asset dropped roughly 0.3% as participants watched market activity alongside the Federal Open Market Committee gathering.
Traders widely anticipated that the central bank would maintain borrowing costs between 3.75% and 4%. Data from CME Group indicated a 90.6% chance of a rate pause, with markets pricing in a possible 0.25-percentage-point rate hike for December.
The 50-day simple moving average for Bitcoin sat at $81,831, acting as a major resistance barrier. Keith Alan, a crypto analyst, cautioned that a four-hour candle finish beneath $80,565 might lower chances of another push toward that barrier.
Data from on-chain provider Glassnode showed that purchase demand was moving down to cheaper levels. Bids totaling only $3.4 million stayed close to $80,000, whereas roughly $42 million in purchase orders gathered in the $78,000 to $79,000 range, which could serve as vital support if selling intensifies.
Participants also kept an eye on large technology sector earnings and statements from Fed Chair Kevin Warsh regarding economic health and market direction, which might direct the next price shift amid potential market swings.
