Bitcoin (BTC) tested traders’ nerves once again on March 16, as a fresh rally above $40,000 ended within minutes.
Shorts feel the burn after a steep trip to $41,700
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair surged to highs of $41,700 on Bitstamp before instantly reversing.
Two hourly candlesticks were enough for the entire market to rise $2,000, break important resistance levels and go back down.
The movement, though recently common, was not without casualtiesas evidenced by liquidations on exchanges.
According to data from the on-chain monitoring resource Coinglass, bitcoin accounted for $98 million of these settlements over the 24 hours at the time of writing this article. Total cryptocurrency settlements for the period were just over $200 million.
Although it is still in the middle of its set trading range, the BTC/USD pair drew resistance at both $40,000 and $41,000 before the latter strengthened once the pair deflated.
On March 16, $41,000 was still selling pressure, but a significant buildup of sellers had yet to reappear at the $40,000 level.as shown by Binance order book data compiled by monitoring resource Material Indicators.
A “Snooze party” until the announcement of the Fed rate hike?
For analysts, meanwhile, the immediate past pales in comparison to what the immediate future may bring on March 16.
At 2:00 pm EST, the United States Federal Reserve is set to reveal movements in interest ratessomething that many were looking at as a potential paradigm shift in pricing.
For popular Crypto trader and analyst Ed, there was nothing to see until the news broke.
#BTC update from yesterdays video
Overshot the red box a bit, but is back in the range.Back to snooze party till FOMC?
Subscribe here for next video: https://t.co/Lb3xLQhOYu pic.twitter.com/uelS3QPgLv
— Ed_NL (@Crypto_Ed_NL) March 16, 2022
BTC update from yesterday’s video. She overshot the red box a bit, but she’s back in range. Back to the snooze party to the Federal Open Market Committee? Subscribe here to see the next video
The Twitter account PlanC, for its part, argued that the market had already priced in the expected 0.25% rate hike, but that this would not help macro inflationary forces. -which by themselves could advertise BTC as a store of value-.
“The Fed will raise rates by 25 basis points, which is already discounted and will do nothing to stop inflation”, summarized account.
The BTC/USD pair was trading around $39,500 at the time of writing, still above March 15 levels.
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