Bitcoin closes in on $28,000, following a significant breakout at the 1D50 EMA resistance. This was accompanied by a lot of volume. As major crypto currencies and altcoins experience relief bounces, the Crypto Market looks bullish in the short-term.
FOMC Meeting: Market Drops
In the recent days the FOMC was the focal point of all the buzz in the market. The FOMC has seen major cryptocurrency trading decline from their key support areas and resistances, such as Bitcoin trading around $20,000.00 and Ethereum falling to $1,376.
Similar Readings: Bitcoin falls to 1-week low ahead of Fed hike rate decision
Rumours of an increase in the rate caused the crypto market to bounce before the FOMC meeting. BTC rose to $22,000 prior to that.
The Federal Open Market Committee will meet Wednesday. It was increased its interestT by 0.75% marking The highest rate of increaseSince the 1980s. The Federal Reserve Chairman Jerome Powell stated, “unusually large increase could be ideal in future meetings and a period of economic slowdown will be vital to bring back price stability.”
The news brought a lot of attention to major cryptocurrencies, including Bitcoin trading at $23,100 above the resistance 1D 50 EMA. The rally was praised by many market participants as it may signal additional upsides or relieve altcoin bounces.
Read More: Fed announces 0.75 point rate bump, Surprise climb
“If 75bps gave us this pump, 100bps would send us to ATH surely,” @Livercoin
“Ideal ingredients for a Summer Relief Rally are there:
- Powell becomes more data-dependent and dovish about policy.
- $ETHThe September issue of Mergers will be available.
- Severe impact on 3AC, Celsius and other factors already price in.
- I’m seeing $ETH to $2,400 and $BTC to $28,000-30,000.” @CryptoMichNL
Bitcoin breaks the 50 EMA mark in one day with good volume
We are seeing Bitcoin rally with high volume.
After trading in this region for over a month, BTC had difficulty breaking into it.
If BTC fails to break this major resistance, bulls would likely revisit the $21,000 – $20,700 to build more momentum for a potential breakout. BTC that fails to fall below $20,000 will not be validated. The bears will hold more power than the bulls.
The Status of Bitcoin on the 4H Chart
BTC on the 4H timeframe looks good as it needs to break above a minor resistance of $24,200 to soar higher to the region of $26,800 – $28,000.
After months of falling interest and a downtrend in crypto markets, the overall sentiment of the market is now improving. High expectations are placed on the crypto market for an Ethereum merger.
BTC will recover with the other major altcoins. This would bring more hope and relief to the market.