Why Crypto Market is Up Today? – Coinpedia Fintech News
why Bitcoin is up today? Bitcoin has pushed above $29,000 following the U.S. Federal Reserve’s 25 basis point interest rate hike on Thursday
Bitcoin and the crypto market have rebounded despite an initial bearish reaction to the recent FOMC meeting.
The market anticipates a pause in rate hikes during the next FOMC meeting on June 14, which could benefit cryptocurrencies.
Bitcoin’s current head and shoulders pattern is generally bearish, but an upward breakout could lead to a significant price increase.
Despite originally reacting negatively to the recent Federal Open Market Committee (FOMC) meeting of the US Federal Reserve, Bitcoin, and the broader crypto market have experienced an impressive upswing.
A Turning Point in Monetary Policy
The crypto market’s resurgence might be attributed to the belief that, despite Fed’s Jerome Powell’s hawkish remarks, the Fed will pause rate hikes during its next FOMC meeting on June 14.
In March, most FOMC participants indicated that the final rate for this tightening cycle would be between 5% and 5.25%—precisely where the fed funds rate landed after the recent meeting.
Market Dynamics and Technical Analysis
Risk assets often benefit from dovish monetary policy, as it leads to increased liquidity in the financial system. Since March 17, Bitcoin’s price has been trading in a head and shoulders pattern, generally considered a bearish signal.
Currently, the neckline of this pattern is $27,500. If Bitcoin’s value drops below this level, it could potentially fall to $23,200, which is the 0.5 Fib retracement support level. However, if the price surpasses the pattern’s right shoulder, it could defy the bearish trend and potentially soar to $42,000.
At the time of writing, Bitcoin was valued at $29,082, with the global cryptocurrency market cap trading around $1.248 trillion—a 1.5% increase in the last 24 hours.
Projected Growth and the Impact on Altcoins
Matrixport, a crypto-services provider, predicts that Bitcoin could rally by 20% to reach $35,000 – $36,000. The company’s research report suggests that Bitcoin has been trading in a narrowing wedge that is likely to break upward. This could potentially result in a 20% increase, equivalent to the price range when the wedge began to form.
Altcoins have also remained relatively stable following the Fed’s interest rate hike. Ethereum, one of the top 10 gainers, has seen a 2% increase, pushing its value back above $1,900. Other notable gainers include BNB, ADA, DOGE, MATIC, SOL, DOT, SHIB, and AVAX, all of which are experiencing modest gains on a daily scale.
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