The U.S. Federal Reserve announced a 25-bps interest rate increase, putting Bitcoin in the green. This was according to market expectations. The cryptocurrency was hinting at bullish price action during the week, as today’s Federal Open Market Committee (FOMC) closed in.
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Bitcoin is trading at $41,300, with 5% profit on the last day. BTC’s price was able to break above this price point after a brief period of volatility as FED Chair Jerome Powell began its intervention.
BTC’s price reacted to the upside and could continue on this trajectory in the short term, as the FED met market expectations.
Medium term accordingMaterial Indicators (MI) show that the FED is projecting 7 rate rises, which suggests a possible hawkish approach to monetary policies. This could translate into a headwind for BTC’s price and the crypto market.
Inflation is at an all-time high of multi-decades. The U.S. banking institution has determined to reduce it. This could be difficult given the macro-economic conditions, including the conflict in Ukraine and obstacles in supply chains.
Bitcoin’s current price action moves in tandem with MI’s analysis. Expecting a rally in the short term, the analysts are still reticent to call in a BTC’s price bottom. MI shared the following chart:
Bitcoin is currently testing the 200 MA in a 3 Day chart, but interactions with it are not common. Most traders view the 200 Weekly MA as a valid and more reliable level.
In addition, the analysts believe Bitcoin could resume a more persistent bullish trend if it’s able to reclaim previous lows and break above a new all-time high beyond $69,000.
Bitcoin Long-Term: A Battle for Global Dominance
An already volatile mix of uncertainties is created by the War in Russia and inflation. Supply problems, inflation, and recent speculation that Saudi Arabia may accept the Yuan to transact oil business transactions only add to the danger.
8/12 Add in the fact that Saudi Arabia may accept a number of foreigners #YuanInstead of using Dollars to buy Chinese oil, you can use an accelerator that will cause more market instability and economic problems. https://t.co/5by5PkH8Vf
— Material Indicators (@MI_Algos) March 16, 2022
MI is convinced that there is a war on the U.S. dollars as a global reserve money. Driven by Russia and China, this conflict could potentially escalate leading to a “black swan event”, like during 2020 when the crypto market reacted to the COVID-19 pandemic.
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Bitcoin might be the winner in a world that has uncensorable and decentralized currency. MI said:
Trading crypto seems trivial due to the possibility of WW3. But you need to plan for such an event. This means prudent risk management, capital preservation and capital preservation for what could be a life-changing buying opportunity.
