{"id":486207,"date":"2022-03-16T22:28:29","date_gmt":"2022-03-16T22:28:29","guid":{"rendered":"https:\/\/wncen.com\/?p=486207"},"modified":"2024-06-11T14:18:27","modified_gmt":"2024-06-11T14:18:27","slug":"fed-announcement-pushes-bitcoin-price-up-will-btc-sustain-momentum","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/fed-announcement-pushes-bitcoin-price-up-will-btc-sustain-momentum\/","title":{"rendered":"FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?"},"content":{"rendered":"

Market expectations were met as the U.S. Federal Reserve (FED) announced an interest rate hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting at bullish price action during the week, as today\u2019s Federal Open Market Committee (FOMC) closed in.<\/p>\n

Related Reading |\u00a0Mike Novogratz: Bitcoin Price To Range Between $30k-$50k Throughout The Year<\/a><\/strong><\/p>\n

At the time of writing, Bitcoin trades at $41,300 with 5% profits on the last day. BTC\u2019s price was able to break above this price point after a brief period of volatility as FED Chair Jerome Powell began its intervention.<\/p>\n

\"Bitcoin
BTC records slight gains post interest rates increase from the U.S. FED. Source: BTCUSD Tradingview<\/a><\/figcaption><\/figure>\n

BTC\u2019s price reacted to the upside and could continue on this trajectory in the short term, as the FED met market expectations.<\/p>\n

In the medium term, according<\/a> to Material Indicators (MI), the FED projects 7 rate hikes that hint at a potential hawkish approach in monetary policy. This could translate into a headwind for BTC\u2019s price and the crypto market.<\/p>\n

The U.S. financial institution is determined on reducing inflation which currently stands at a multi-decade high. However, reducing inflation could prove difficult in the current macro-economic environment with the war in Ukraine and supply chain obstacles.<\/p>\n

Bitcoin\u2019s current price action moves in tandem with MI\u2019s analysis. Expecting a rally in the short term, the analysts are still reticent to call in a BTC\u2019s price bottom. Sharing the chart below, MI added:<\/p>\n

Although Bitcoin has been testing the 200 MA on a 3 Day chart since January and interactions with that range are rare, most traders are looking at the 200 Weekly MA to be a more valid level to bottom test.<\/p><\/blockquote>\n

\"Bitcoin
Source: Material Indicators via Twitter<\/a><\/figcaption><\/figure>\n

In addition, the analysts believe Bitcoin could resume a more persistent bullish trend if it\u2019s able to reclaim previous lows and break above a new all-time high beyond $69,000.<\/p>\n

Bitcoin In The Long Term, A War For Global Dominance<\/h2>\n

The War in Russia, inflation, supply obstacles, and the recent possibility for Saudi Arabia to start accepting the Yuan for oil transactions add to an already dangerous mix of uncertainty.<\/p>\n

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8\/12 Now add in the news that Saudi Arabia is considering accepting #Yuan<\/a> instead of Dollars for Chinese oil and you have an accelerator for more economic problems and market uncertainty. https:\/\/t.co\/5by5PkH8Vf<\/a><\/p>\n

— Material Indicators (@MI_Algos) March 16, 2022<\/a><\/p><\/blockquote>\n