Bitcoin has fallen into a sideways pattern over the past few hours as traders retire to the sidelines ahead of the US Fed’s rate decision tomorrow.

Opinions are divided across the markets as some expect the bearish momentum to resume once the institution announces its decision. However, others argue that the potential downside has already been priced-in, meaning that a bullish reversal could be triggered by the decision announcement.

Some argue that a 270 basis points rate hike, spread across several months until early 2023, has already been priced-in.

That said, a breach of the $38,000 low should confirm a bearish continuation in the coming hours. However, a rebound above the 4-hour 100 EMA at $39,650 should kickstart a rebound back to $41,000 and above.

Meanwhile, my resistance levels are at $39,000, $40,000, and $41,000, and my key support levels are at $37,000, $36,000, and $35,000.

Total Market Capitalization: $1.73 trillion

Bitcoin Market Capitalization: $729.2 billion

Bitcoin Dominance: 42.1%

Market Rank: #1