Bitcoin (BTC) increased volatility until the weekly close on March 13 as markets braced for geopolitical and macroeconomic signals.
Long-awaited Fed action coming this week
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it came close to testing $38,000 support again on Sunday.
The pair had seen a quiet weekend on Wall Street, the weekend turned out equally quiet as the status quo both inside and outside of crypto continued without any surprises.
However, attention was already focused beyond the close on Sunday, specifically on the upcoming US Federal Reserve interest rate decision.
Due on March 16, the scope of the alleged rate hike could provide temporary volatility and even a longer-lasting turnaround for risk assets, depending on their size.
The situation between Russia and Ukraine also remained a major focus, amid faint signs that consensus among negotiators could come sooner rather than later.
For the Material Indicators monitoring resource, the Bitcoin chart showed the spot price between the 50 and 100-week moving average (WMA), before the Federal Reserve decision.
“BTC price continues to oscillate between the 50 and 100 WMA”, summarized to Twitter followers that day.
“Typical volatility is expected around the weekly close. Market fears Putin and pending Fed funds rate announcement. Both are catalysts for any outcome for chart direction.”
Meanwhile, popular trader and analyst Crypto Ed described weekend action as “sluggish” amid an absence of meaningful tests of support or resistance, while analyst Matthew Hyland likened Bitcoin’s behavior to “watching the paint dry.”
For stocks, however, it was a welcome break from another week of sharp declines.
Global stocks have lost another $2.5tn in mkt cap this week as investors have been positioning around developments in #ukraine, #stagflation fears, a hawkish tilt from #ECB, and ahead of next week’s FOMC meeting. Global equities are now worth $107.5tn equal to 127% of global GDP. pic.twitter.com/pFDynD1NS3
— Holger Zschaepitz (@Schuldensuehner) March 13, 2022
Global stocks have lost another $2.5 trillion in market cap this week as investors have been positioning themselves around developments in Ukraine, stagflation fears, an aggressive ECB tilt and ahead of the FOMC meeting. in the next week. Global stocks are now worth $107.5 trillion, equal to 127% of world GDP.
Russia’s stock market remained closed throughout the week and no stocks are expected to be traded until at least March 18.
Big pullback ‘can’t be ruled out’, analyst says
However, after calls for a more substantial retracement of the BTC/USD pair, tips came in on a potential “buy the dip” opportunity.
Bitcoin’s log growth curve and 200 WMA, just above $20,000 and $30,000, respectively, could form potential macro support levels should such an event occur.according to the Decentrader trading suite.
In its latest market update published on Friday, the firm argued that the scenario “cannot be ruled out”.
“Such a drop could push Bitcoin towards the bottom of the log growth curve, which continues to rise and is now above $30,000 for the first time. Beyond that is the 200 WMA, which is also rising and now at $20,500″He said.
However, his position in the market would turn “bearish in the medium term”.
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