Bitcoin (BTC) headed for fresh nine-month highs after Wall Street’s March 21 open as a crucial Federal Reserve interest rate decision loomed.
Bitcoin Price Rises Despite Fed’s Conservative Opinion
Data from Cointelegraph Markets Pro and TradingView shows the BTC/USD pair approaching $28,500 on Bitstamp.
The latest in a succession of multi-month highs, BTC’s latest price action precedes what promises to be a volatile day for markets.
March 22nd, The Federal Reserve will announce how much, if any, it will raise interest rates, and a pause in the rate hike is seen as a boost to risky assets.
Michaël van de Poppe, a Cointelegraph contributor and founder and CEO of trading firm Eight, wrote in part from a Twitter update: “Very interested to see tomorrow’s result.”
“Potential sweep to the highs, closing the CME gap, trapping everyone and creating bearish divergences is an ideal concept. Key zone USD 28,700”.
Nevertheless, Bitcoin produced interesting moves on the day, with dollar gains coupled with volatility in the overall cryptocurrency market cap dominance.
“Altcoins are bleeding, while Bitcoin is still consolidating around the highs. These are not the signs you would want to see,” Van de Poppe warned earlier.
“Money rotating from altcoins to Bitcoin amid fears for tomorrow’s FOMC meeting. I would stay relatively calm in the positions as well. Obvious opportunities will arise.”
The subsequent drop after the Wall Street open was described by popular Crypto trader Tony as an “interesting dump in BTC Dominance creating a surge in altcoins.”
The mixed signals reflected market sentiments for the Federal Open Market Committee (FOMC) meeting. According to CME Group’s FedWatch Tool, most now envisioned a 25 basis point rate hike, in contrast to the previously favored pause.
“All classes” buying BTC
Analyzing trader behavior, Material Indicators, an on-chain monitoring resource, revealed widespread buying on the world’s largest exchange, Binance.
A snapshot of the order book for the BTC/USD pair showed increasing exposure to both large and small volumes ahead of the FOMC.
$28,500 and $29,000 formed the strongest resistance levels at press time, while the nearest significant support was further from the spot price, at $27,000.
#FireCharts shows all classes buying this #BTC move. pic.twitter.com/NjrodLhmCD
— Material Indicators (@MI_Algos) March 21, 2023
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