• Bitcoin price breaks out of the black descending trend line. 
  • BTC price is squeezed against $48,760, with a bullish breakout set to unfold. 
  • As the RSI is still below 50, there is plenty of room for the uptrend to continue without any large profit-taking.

Bitcoin (BTC) price sees investors pre-empting the FED decision later this evening, as bulls lift BTC price above an intermediary black descending trend line to face $48,760 historical resistance, and exert a bullish squeeze. Following the breakout, expect bulls to push on, although the US central bank decision later this evening could provide either tailwinds or headwinds. Expect no substantial movements for now, but with the bullish uptick and Relative Strength Index (RSI) still below 50, there is room for more upside towards a target at $53,350.

Bitcoin prepares to make a comeback

Bitcoin price sees bulls attacking the black intermediary descending trend line and the historical level at $48,760. With the black ascending trend line broken more investors are likely to come in and pre-position themselves for a breakout above $50,000. A subdued RSI suggests there is more room to go. 

BTC price could see some headwinds from the FED rate decision later today, which may provide a catalyst for a pivot to either a risk-on or risk-off market environment. In the case of risk-on, tailwinds will emerge in both stocks and cryptocurrencies,  lending BTC price the wings to reach $53,350 or even possibly $55,619, and a possible 15% in gains.

BTC/USD daily chart

BTC/USD daily chart

Should Powell and the FED come out more hawkish, however, expect investors to flee into cash, pulling the plug on riskier assets like equities and cryptocurrencies. Bitcoin price would be expected to tank on the news, declining towards $44,088 or $43,030 where it might then bounce. Any further downside could be limited, however, given by then RSI would be far into oversold territory.


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why LUNA traders do not have to be in the market all the time

Why LUNA traders do not have to be in the market all the time

Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.

More Terra News

SEC vs. Ripple case, two key decisions awaited by XRP holders

SEC vs. Ripple case, two key decisions awaited by XRP holders

XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple. 

More Ripple News

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and 

More Polygon News

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart. 

More Shiba Inu news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP