Bitcoin price not out of the woods as sidelined investors remain fearful

Bitcoin (BTC) price is still not yet set for a rebound as bears can trip bulls and push the price back below the pivotal level at $36,709. As markets are trying to catch a breather, it does not look like bears will be going away that easily and could pressure BTC price action to the downside. Expect a nervous session to unfold with price swinging back and forth at that pivotal level, but ultimately likely to break to the downside towards $32,649, with a loss of 10% on the day.

Bitcoin price is set for a nervous session

Bitcoin saw bulls coming in strong once price action slipped briefly below the monthly S2 at $33,742. Bulls bought everything in sight and pushed price action back up above $36,709 but failed to safely position the trade for a further uptick in the coming trading session. As BTC price is already undergoing some profit-taking, it looks as if investors are still awaiting confirmation that the pain trade is over.

BTC price will probably trade a nervous session today, as markets will want to wait for the FED meeting later tomorrow and will not want to preposition for the possibility the FED disappoints or delivers an even more hawkish message. Expect choppy price action around $36,709, and possibly another leg lower towards the monthly S2 at $33,742. A test and break below yesterday's low at $32,649 is not an impossibility if Nasdaq sheds multiple percentages points off its value again.

BTC/USD daily chart

If global sentiment changes and pushes US equities in the green later this afternoon, expect a bullish flood to come into cryptocurrencies. That would see BTC price testing $39,780 to the upside with the monthly S1 support as resistance from any upside. If the rally is large and broad, expect even $44,088 to be on the cards,  and for that to erase a large part of the downturn since the beginning of this year.