Bitcoin (BTC) has begun a new week with increased volatility following the announcement that First Republic Bank is being placed in public receivership and taken over by JPMorgan Chase. This news comes before this week’s Federal Reserve meeting, where the next interest rate shift will be revealed, adding further potential pressure to BTC price action.

Bitcoin reaches “bounce” targets as potential strength returns to altcoin markets

After closing out April at $29,300, BTC/USD swiftly dropped lower, reaching local overnight lows of $28,289. Bitcoin reached “bounce” targets for some, including Michaël van de Poppe, founder and CEO of trading firm Eight, who noted potential strength returning to altcoin markets. Popular trader Crypto Tony confirmed that he was waiting for $28,300 support to prove itself before taking a position.

US Federal Reserve meeting takes center stage

The US Federal Reserve meeting takes center stage this week, with the forthcoming 0.25% hike, likely to be announced at the May 3 meeting of the Federal Open Market Committee (FOMC), still not guaranteed. The Fed is hiking rates despite increasing signs of an inbound recession, while a more pressing danger comes in the form of the lingering banking crisis from March.

Crypto market sentiment creeping higher

Crypto market sentiment has been creeping higher after a drop in late April. The latest readings from the Crypto Fear & Greed Index show that market “greed” is trending back toward levels last seen at Bitcoin’s $69,000 all-time high in November 2021. The index shows the ease with which sentiment is currently being influenced by comparatively small market shifts. This reiterates the importance of current resistance levels for Bitcoin and Ether (ETH) in particular.

Bitcoin’s price action is facing potential pressure after the announcement that First Republic Bank is being placed in public receivership and taken over by JPMorgan Chase. This news comes before this week’s Federal Reserve meeting, where the next interest rate shift will be revealed. Bitcoin reached “bounce” targets after swiftly dropping lower, with potential strength returning to altcoin markets. The US Federal Reserve meeting takes center stage this week, with the forthcoming 0.25% hike still not guaranteed. Crypto market sentiment has been creeping higher after a drop in late April, with the Crypto Fear & Greed Index trending back toward levels last seen at Bitcoin’s all-time high.

Analysis

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