The price of bitcoin is teetering on the brink. An increase to $680 will open the way to the promised land to $2000. The night ahead of the FOMC meeting.

Analysis prices

Analysis time: 27.07.2016, 13:00 UTC

OKCoin, a 3-month futures 4 hour chart

The MACD on 4-hour chart remains below zero (circled in crimson) and saved RSI reverse divergence with price (marked in blue) that clearly smacks of bear for all of you who have read at least one book on technical analysis. We can assume that based on irrational market psychology denies the decline even in the absence of institutional support from the whales. Therefore, may form a corrective pattern sideways (crimson line) until the until will not start the sale at $640.

$640 - key level: as long as the price remains above this level, still has a chance that the major players will be able to keep the price above this level until until in the end will not be triggered by growth. In the past there have been many examples where whales are held horizontal support and slowed down the decline despite a bear market. Our method of trading on the xbt.social prescribes sale, but we follow the whales, and fully verify the necessary sales only when they recognize a drop below $640.

FOMC

Today at 19:00 UTC there will be a meeting of the Federal open market Committee (FOMC) statement on interest rates on USD (left unchanged in a corridor of 0.25% of 0.5%). Here we have the pattern of lateral movement, already mentioned above. The consensus of the wider markets that the fed will not raise rates, but can only do this in December 2016 after the presidential elections in the United States.

However, there are two factors that must be taken into consideration:

1. The market often uses the news (regardless of their content) as catalysts for further action.

2. The fed (controversial, but nonetheless consistently made mistakes since its founding.

Thus, the results of today's FOMC meeting don't bring any expectations or motives to actions, but to track the market within the next hours before and after 19:00 UTC.

Summary

Above the bitcoin price continues to dominate curse. Coffee grounds formed a strange pattern, resembling a bear-coyote. Crystal ball Hosana (author) clouded this tragic summer's day, so now all he can see is technical indicators and the global economic calendar that needs to be brought in clarity in the coming hours. $600 is waiting below $640. And below $600 is waiting for the low of the previous correction $560. If the market can reach to such low level, we can look to heaven and finally see $2000.