Categories: Bitcoin Latest News

Bitcoin Gives Bullish Clues, Will The FED Meeting Get In The Way?

Bitcoin is still stuck in the $38,000 area with sideways movement during the past week. The first crypto by market cap has displayed resilience as traditional finances take a bearish turn.

Related Reading | Bitcoin Holders Trigger Largest Capitulation In Its History, Bearish Horizon For BTC?

At the time of writing, Bitcoin (BTC) trades at $38,400 with 1.1% losses in the last 24-hours.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

Tomorrow, the U.S. Federal Reserve (FED) branch Federal Open Market Committee (FOMC) will hold a meeting. Market participants expect the financial institution to announce a more aggressive shift in their monetary policy.

Two months ago, the FED hinted at an increase in interest rates by 25 basis points (bps). Tomorrow the increase could be set higher at 50 basis points (bps).

This will be the first 50 bps hike in over two decades, according to trading firm QCP Capital. The firm believes that Bitcoin and the crypto market have been suffering because of several factors.

These include a dropped in equities, with the NASDAQ Index and the S&P 500 recording 13% and 9% losses in 30 days. Bitcoin has been moving in tandem with big tech stocks. Therefore, the crash was expected, but not the subsequent strength.

The latter has been underestimated by market participants. The general sentiment in the crypto market seems bearish despite Bitcoin’s capacity to hold critical support at its current levels.

In addition to the macro-outlook, QCP Capital believes there has been an increase in negative headlines which contributed to the losses. Several DeFi protocols suffered exploits over the past week, and other networks experienced outages.

However, the trading firm noted the following:

In spite of the overall bearishness, we’ve actually been seeing decent upside demand both in the front-end as well as out to September and December.

In the options market, QCP Capital records an increase in demand for calls for Bitcoin at $40,000 in May. Thus, the cryptocurrency could rally in the coming days as the FED’s announcement seems to be priced in.

Bitcoin Shows Some Bullish Signals, But Doom Is Still In The Cards

Analysts from Material Indicators seem to support the short-term bullish thesis. This could provide Bitcoin with support to get back into the $40,000 levels.

As one analyst recorded, for the first time in a while, exchanges’ order books show that big players have been stepping up and buying into BTC’s current price action. In past months, the cryptocurrency has been able to bounce, but any rally has been rejected at critical resistance.

#FireCharts CVD is showing #BTC Whales and Mega Whales have been market buying in this range and a rounding bottom pattern is forming. A relief rally may be coming. Doesn’t mean the macro bottom is in. #NFA #Crypto #tradingpsychology https://t.co/VzE3V2kA8Q pic.twitter.com/MmIyleHGer

— Material Indicators (@MI_Algos) May 3, 2022

Related Reading | TA: Bitcoin Bears Keep Pushing, Why Upsides Remain Limited

Another analyst claims the U.S. dollar could present some losses as it trends downwards into “weak” support at $0.95 in the EUR/USD chart. The analyst said the following hinting at the possibility of another “dead cat” bounce and more downside price action for BTC:

Last time it hit one of these was in the first March week. BTC rallied afterwards. So, now that it hit another level, maybe BTC will give us another exit pump before doom?

Bitcoin is still stuck in the $38,000 area with sideways movement during the past week. The first crypto by market cap has displayed resilience as traditional finances take a bearish turn.

Related Reading | Bitcoin Holders Trigger Largest Capitulation In Its History, Bearish Horizon For BTC?

At the time of writing, Bitcoin (BTC) trades at $38,400 with 1.1% losses in the last 24-hours.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

Tomorrow, the U.S. Federal Reserve (FED) branch Federal Open Market Committee (FOMC) will hold a meeting. Market participants expect the financial institution to announce a more aggressive shift in their monetary policy.

Two months ago, the FED hinted at an increase in interest rates by 25 basis points (bps). Tomorrow the increase could be set higher at 50 basis points (bps).

This will be the first 50 bps hike in over two decades, according to trading firm QCP Capital. The firm believes that Bitcoin and the crypto market have been suffering because of several factors.

These include a dropped in equities, with the NASDAQ Index and the S&P 500 recording 13% and 9% losses in 30 days. Bitcoin has been moving in tandem with big tech stocks. Therefore, the crash was expected, but not the subsequent strength.

The latter has been underestimated by market participants. The general sentiment in the crypto market seems bearish despite Bitcoin’s capacity to hold critical support at its current levels.

In addition to the macro-outlook, QCP Capital believes there has been an increase in negative headlines which contributed to the losses. Several DeFi protocols suffered exploits over the past week, and other networks experienced outages.

However, the trading firm noted the following:

In spite of the overall bearishness, we’ve actually been seeing decent upside demand both in the front-end as well as out to September and December.

In the options market, QCP Capital records an increase in demand for calls for Bitcoin at $40,000 in May. Thus, the cryptocurrency could rally in the coming days as the FED’s announcement seems to be priced in.

Analysts from Material Indicators seem to support the short-term bullish thesis. This could provide Bitcoin with support to get back into the $40,000 levels.

As one analyst recorded, for the first time in a while, exchanges’ order books show that big players have been stepping up and buying into BTC’s current price action. In past months, the cryptocurrency has been able to bounce, but any rally has been rejected at critical resistance.

Related Reading | TA: Bitcoin Bears Keep Pushing, Why Upsides Remain Limited

Another analyst claims the U.S. dollar could present some losses as it trends downwards into “weak” support at $0.95 in the EUR/USD chart. The analyst said the following hinting at the possibility of another “dead cat” bounce and more downside price action for BTC:

Last time it hit one of these was in the first March week. BTC rallied afterwards. So, now that it hit another level, maybe BTC will give us another exit pump before doom?

Tags: bitcoinbtcbtcusd

FeedzyRead More

Recent Posts

Analyst Says Bitcoin Price At $100,000 Is A ‘Dangerous Zone’, Predicts Massive Crash

The Bitcoin price recently achieved a monumental milestone, crossing the $100,000 threshold for the first…

25 minutes ago

The Joule Paradox: Energy sets the value of bitcoin and bitcoin sets the value of energy

Early in our thinking about the interaction between bitcoin and energy it became obvious to…

4 hours ago

Did Hawk Tuah Crypto Debacle Eclipse Bitcoin’s $100K Moment?

One bitcoin is worth $100,000 — a milestone that has <a href="https://www.coindesk.com/business/2024/12/05/bitcoin-at-100-k-industry-reaction" target="_blank">crypto OGs in…

5 hours ago

Crypto Daybook Americas: It’s Glass Half Full Despite Record Short Bitcoin ETF Volume

By Omkar Godbole (All times ET unless indicated otherwise) You know how it feels when…

8 hours ago

Has Bitcoin Reached Its Cycle Top? Insights From Leading Analysts

Bitcoin experienced extreme volatility yesterday after reaching a new all-time high of $104,088 on Wednesday.…

8 hours ago

Ethereum To Pull A BTC 2021-Like Rally? Analyst Shares Massive Prediction

As Bitcoin finally soars above the long-awaited $100,000 milestone, Ethereum (ETH) attempts to break out…

11 hours ago