TRENDING:
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
Login
|

Bitcoin Market Update: FOMC decision inspired another BTC/USD growth attempt

  • Bitcoin may retreat towards the channel support at $9,600.
  • A sustainable move above $10,00 is needed for the upside to gain traction.
Bitcoin Market Update: FOMC decision inspired another BTC/USD growth attempt
Tanya AbrosimovaTanya AbrosimovaIndependent Analyst

BTC/USD made another attempt to break above $10,000 on late Wednesday and settled in a range $9,800-$9,900 during early Asian hours on Thursday. At the time of writing, BTC/USD is changing hands at $9.850 amid growing bearish pressure as on the intraday charts the price is reversing from the overbought territory. Despite the retreat, BTC/USD has gained nearly 1.5% since this time on Wednesday and moved above the former local resistance of $9,800 that now serves as a line of support. 

FOMC is behind the move

While the correlation between Bitcoin price movements and macroeconomic developments is still unclear, some analysts believe that the sharp price movement was triggered by the statement of the Fed's head Jerome Powell. The U.S. central bank left the key rate at 0-0.25% and assumed that the monetary policy would stay intact until the end of 2022 due to high unemployment rates. Powell pointed out that the decline in U.S. GDP in the second quarter could be record-breaking. 

A popular cryptocurrency analyst Ceteris Paribus (@ceterispar1bus) commented on Twitter:

BTC really trying to break through after that FOMC statement. A bit of a delayed reaction, but there's not really a more bullish macro catalyst than zero rates through 2022. Would be pretty disappointed if this didn't start aggressively going higher here.

BTC/USD: Technical picture

BTC/USD bumped into $10,000 and resumed the decline. A failed attempt to break above the critical resistance may lead to an extended downside correction towards the lower boundary of the recent consolidation range at $9,600. This channel support should stop the sell-off due to a large cluster of buying orders and a combination of technical factors, including 4-hour SMA100 and the upper line of the previously broken triangle pattern.

On the upside, once $10,000 is out the way, the recovery will gather pace and take the price towards the previous recovery high at $10,4141 followed by the highest level of $2020 at $10,511.

BTC/USD 4-hour chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

More from Tanya Abrosimova
Share:

Editor's Picks

XRP approaches key support as risk-off sentiment deepens

XRP approaches key support as risk-off sentiment deepens

Ripple (XRP) is trading at $1.06 on Monday, maintaining its position within a broader bearish trend. The token’s technical outlook continues to deteriorate, pressured by declining retail participation. Appetite for risk assets remains lethargic, as reflected in the Fear & Greed Index, which is embedded in the Fear territory at 28.
Crypto Today: Bitcoin, Ethereum, XRP extend decline amid renewed risk-averse sentiment

Crypto Today: Bitcoin, Ethereum, XRP extend decline amid renewed risk-averse sentiment

The cryptocurrency market remains weak on Monday, with Bitcoin (BTC) falling toward the nearest $62,000. Ethereum (ETH) and Ripple (XRP) reflect the sell-off across altcoins, edging lower toward $1,800 and $1.05, respectively. Risk appetite remains subdued, as the Fear & Greed Index holds steady at 28, deep within Fear territory.
The Bitcoin futures yield collapse: Once over 20%, now less than Treasury notes

The Bitcoin futures yield collapse: Once over 20%, now less than Treasury notes

Once a goldmine for carry traders, Bitcoin futures have flipped, consistently underperforming plain‑vanilla U.S. Treasuries every month since February. Carry trades consistently yielded 20% or more across regulated and unregulated crypto exchanges during the 2021 bull market. The strategy involved shorting Bitcoin futures while simultaneously buying a spot exchange-traded fund (ETF).
The crypto market is moving in the opposite direction to equities

The crypto market is moving in the opposite direction to equities

The crypto market’s market capitalisation has fallen by 1% over the past 24 hours, returning to levels last seen in mid-July. The positive momentum the market showed in the first half of last week failed to take hold. Once again, we are seeing a negative correlation with the Nasdaq 100 index, this time in the form of falling cryptocurrencies while shares rise. Could this be becoming the new norm?
Bitcoin: Bulls hold the line

Bitcoin: Bulls hold the line

Bitcoin (BTC) edges slightly lower, trading at $64,300 at the time of writing on Friday but holding firmly above a key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) support BTC as they continued to attract institutional flows through Thursday, pointing to the fourth consecutive week of net inflows.