Share this article
Bitcoin has taken an attempt to break $40,000 for the second time this week, with the Fed’s FOMC policy meeting acting as a source of uncertainty.
Bitcoin’s Positive Consolidation around FOMC Meeting
Markets are eyeing the Federal Reserve’s decision on the timeline for phasing out quantitative easing.
Bitcoin shrugged off the selling pressure after Amazon denied rumors that it would begin accepting crypto payments, holding above the 200-day moving average at $34,600.
A bigger threat looms with the Fed’s policy meeting beginning today, where U.S. central bank heads will decide on tapering asset purchases.
If the Fed continues its dovish approach in supporting the economy via a $120 million bond purchase and near-zero interest rates throughout 2022, BTC is likely to continue upwards.
However, a hawkish stance of the Fed will hurt the rising inflation narrative and potentially act as a negative catalyst for Bitcoin’s price.
In the Fed’s last meeting in mid-June, some hands went up for increasing the rates in late 2022, contrary to initial plans. The markets expect the Fed to maintain the status quo in delaying the purchase until 2023 as the threat of the COVID-19 Delta variant and supply-chain hurdles are negatively affecting the economy.
Technically, the leading cryptocurrency now faces resistance at $41,600 and the 50-day moving average at $44,500, with support at the yearly opening price of around $28,800. BTC was last trading at $39,640 after reaching a high of $40,900 before the U.S. market opening bell.
The S&P 500 index opened in the green this morning, up 6.4 points, holding the $4,400 benchmark. Gold dropped below $1,800 this morning while the DXY U.S. dollar index rose by 0.21%, signaling preparations for a hawkish Fed announcement.
The second-largest cryptocurrency, Ethereum, is also holding above support at $2,150. However, ETH is nearing a death cross between the 50 and 200-day moving average, which can be avoided if it holds above current levels.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin Remains Bullish After Shaking on Amazon Rumors
Volatility has struck Bitcoin after a prolonged stagnation period. Although the recent price action was based on a rumor, on-chain data shows that Bitcoin has the buying pressure behind it…
Bitcoin Targets $46,000 After Breaking Crucial Resistance
Bitcoin has turned a crucial resistance level into support, which may attract enough buyers to push prices higher. Bitcoin Begins New Uptrend Bitcoin is looking bullish. The largest cryptocurrency by…
Bitcoin, Ethereum, and XRP Bullish after Weekend Gains
The cryptocurrency markets have kicked off the week with a bang. Bitcoin, Ethereum, and XRP jumped by more than 9% over the past 24 hours, liquidating nearly $1 billion worth…
How to Trade Using the Inverse Head and Shoulders Pattern
In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…