The Fed meeting practically did not affect Bitcoin.
May 4, 2023 2:24 pm
Bitcoin has “calmed down” around the $29,750 level. The upward trend persists, but the cryptocurrency failed to overcome the specified level confidently. Several attempts have already been made. It needs to be visible in the 24-hour timeframe. Still, on the 4-hour – it’s just perfect: Bitcoin has been inside the sideways channel for several weeks, fully confirming our assumption about the nature of its movement. Recall it is expressed in the phrase “strong growth/decline, then – several weeks/months of flat.” Corrections are weak, and the ascending trend line maintains a “bullish” trend. The price is far enough away from it, so even if a strong correction begins, the upward trend will still be preserved.
Yesterday, the Federal Reserve announced an increase in the rate by another 0.25%, bringing it to 5.25%. This is the highest key rate level in the last 15 years. Bitcoin could have fallen against the background of this decision by the Fed (since the talk is about tightening monetary policy again) and could have grown (since traders have long worked out all the Fed’s monetary policy tightenings). Still, it neither fell nor grew, simply ignoring this event. Understanding that Bitcoin has grown for about half a year is important. This fact suggests that the Fed’s unwinding of the monetary policy tightening cycle began much earlier than its actual start. And this is normal. The market always tries to play out the fundamental background, which is at least somewhat known, in advance. After all, this is an excellent opportunity to enter the market before the main movement, i.e., at a more favorable rate.
Thus, it is clear that Bitcoin has already worked out both the rate hikes and the end of this cycle and, possibly, even one or two rate cuts, which may occur next year. It has no new growth factors, so a sideways movement can be observed for an extended period. The cryptocurrency is now inside the sideways channel of $26,800–$30,600. Therefore, overcoming the $29,750 level will require confirmation in the form of overcoming the $30,600 level. Only in this case will it be possible to expect a new wave of growth for the world’s first cryptocurrency.
If the market ignores the results of the Fed meeting and Powell’s speech, other news and macroeconomic data will be ignored even more. Only Friday’s nonfarm payrolls may be an exception to this rule.
In the 24-hour timeframe, Bitcoin has unsuccessfully tried several times to overcome the $29,750 level. Thus, only overcoming this level will allow traders to open long positions with a target of $34,267. Each rebound from this level will entail a correction wave of 2–3 thousand dollars downward. However, in addition to the $29,750 level, we advise focusing on the sideways channel of $26,800–$30,600. The cryptocurrency may spend some more time in it.
The material has been provided by InstaForex Company – www.instaforex.com
Bitcoin has “calmed down” around the $29,750 level. The upward trend persists, but the cryptocurrency failed to overcome the specified level confidently. Several attempts have already been made. It needs to be visible in the 24-hour timeframe. Still, on the 4-hour – it’s just perfect: Bitcoin has been inside the sideways channel for several weeks, fully confirming our assumption about the nature of its movement. Recall it is expressed in the phrase “strong growth/decline, then – several weeks/months of flat.” Corrections are weak, and the ascending trend line maintains a “bullish” trend. The price is far enough away from it, so even if a strong correction begins, the upward trend will still be preserved.
Yesterday, the Federal Reserve announced an increase in the rate by another 0.25%, bringing it to 5.25%. This is the highest key rate level in the last 15 years. Bitcoin could have fallen against the background of this decision by the Fed (since the talk is about tightening monetary policy again) and could have grown (since traders have long worked out all the Fed’s monetary policy tightenings). Still, it neither fell nor grew, simply ignoring this event. Understanding that Bitcoin has grown for about half a year is important. This fact suggests that the Fed’s unwinding of the monetary policy tightening cycle began much earlier than its actual start. And this is normal. The market always tries to play out the fundamental background, which is at least somewhat known, in advance. After all, this is an excellent opportunity to enter the market before the main movement, i.e., at a more favorable rate.
Thus, it is clear that Bitcoin has already worked out both the rate hikes and the end of this cycle and, possibly, even one or two rate cuts, which may occur next year. It has no new growth factors, so a sideways movement can be observed for an extended period. The cryptocurrency is now inside the sideways channel of $26,800–$30,600. Therefore, overcoming the $29,750 level will require confirmation in the form of overcoming the $30,600 level. Only in this case will it be possible to expect a new wave of growth for the world’s first cryptocurrency.
If the market ignores the results of the Fed meeting and Powell’s speech, other news and macroeconomic data will be ignored even more. Only Friday’s nonfarm payrolls may be an exception to this rule.
In the 24-hour timeframe, Bitcoin has unsuccessfully tried several times to overcome the $29,750 level. Thus, only overcoming this level will allow traders to open long positions with a target of $34,267. Each rebound from this level will entail a correction wave of 2–3 thousand dollars downward. However, in addition to the $29,750 level, we advise focusing on the sideways channel of $26,800–$30,600. The cryptocurrency may spend some more time in it.
The material has been provided by InstaForex Company – www.instaforex.com
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