- Bitcoin price sees bulls pushing higher in the ASIA-PAC session at the start of this week.
- BTC prints a staggering 10% rally in just twelve hours.
- Big issues ahead as Bitcoin bulls could be left behind with massive losses.
Bitcoin (BTC) price sees its price action pumping higher with already 10% being claimed after the ASIA-PAC trading session handed it over to the European partners. Bulls should be aware of the reason why the US Federal Reserve and the US Treasury were so active in getting a rescue package for the implosion of Silicon Valley Bank and getting the markets to calm down by the US open this Monday. Several banks quickly came out over the weekend with calls that the Fed will not hike interest rates this month, while others think it must if it does not want to lose control over inflation.
Bitcoin traders need to grasp that the Fed’s first mandate is containing inflation, whatever it takes
Bitcoin price has been pushing sharply higher, erasing nearly all the negative price action from last week in just a single trading session. With the European and US trading sessions still to come, bulls could get the wrong impression that this rally has plenty of room to go. It does not, in the opinion of this author, because the Fed and the US Treasury have quickly worked out a solution before Monday, giving them the ability to still hike rates this month.
BTC thus needs to price those hikes back into its price action, which means that all the gains from this Monday morning need to be erased. It fits perfectly as well with the technical analysis as the 55-day Simple Moving Average (SMA) at $22,800 is functioning as a firm cap on the topside. Expect to see an unwind back to square one with BTC nearing $20,000 and touching base around $19,725 at the 200-day SMA.
BTC/USD 4H-chart
A small leg lower looks unavoidable. Certainly with the Relative Strength Index (RSI) breaking through the overbought barrier, there is not much upside potential left. Expect to see some support coming in around $21,969, which holds a superior technical performance from the past. A pause there could be helpful for a pop higher later this week, which could help BTC above $22,800 toward $23,878.
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.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Fed-led rally could have legs towards $65,000
Bitcoin has risen 7% so far this week, supported by the US Fed interest-rate cut and more than $300 million in ETFs inflows. The recent surge led BTC price to shatter several key technical resistance levels, a sign that the current two-week rally has likely some more way to go towards $65,000.
Ethereum, BNB and POL holders on the watch as BingX faces loss of $26 million in hack
Crypto exchange BingX said on Friday that it suffered a hack, an attack that led to “minimal” losses that researchers at PeckShield estimate at $26.68 million. The attacker swapped the stolen altcoins for Ethereum, Binance Coin and Polygon tokens, according to on-chain data.
Pepe price forecast: Eyes for 30% rally
Pepe extends the upward movement on Friday after breaking above the descending trendline and resistance barrier on Thursday. PEPE’s dormant wallets are in motion, and the long-to-short ratio is above one, further supporting this bullish move and hinting at a rally on the horizon.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.