Fed jitters keep Bitcoin price weak but $20.000 holds ahead of key rates decision

Bitcoin prices are going to be very jittery this week as the US Federal Reserve (Fed) will announce its monetary policy decision. The digital currency par excellence is trading on the edge of $22,000, far from its high of last week above $24,000, while Ethereum is holding around $1,500. Total capitalization gives up $1 million after Monday's bearish close at one-week lows.

It continues to trade lower on Tuesday but, fortunately, "holds at $20,000 support for now," commented Naeem Aslam, head of analytics at Avatrade. "Price action on the intraday time frame and daily time frame looks weak," he warned.

"It is widely anticipated that the Fed will raise the interest rate by 75 basis points and during past events when the Fed raised interest rates this year, we saw Bitcoin´s price fall," the expert stated. "Traders have started to believe that this particular fundamental for Bitcoin is quite strong as there is clear evidence of this."

The expert also recalled that Elon Musk also said, when Tesla reported its earnings, that he wants to increase the company's Bitcoin holdings at a lower price.

"From a technical point of view, Bitcoin´s price is struggling to stay above the 50-session moving average on the daily time frame, which means that the bulls are losing ground and if the price falls below this average, it is very likely that the path of least resistance will tilt to the downside," he added.