The recent announcement of the United States Federal Reserve’s interest rate decision has left the world eagerly anticipating how the cryptocurrency market, particularly Bitcoin, will react. In recent months, Bitcoin has been in a bearish trend, leaving investors uncertain about its future. This article will delve into the factors affecting Bitcoin’s price, expert predictions, and market indicators to determine whether the bear market is ending.
To combat inflation, the Federal Reserve of the United States has increased interest rates to their highest level in 16 years. This move has slowed down industries like housing and contributed to the failure of three American banks. However, the Federal Reserve’s chairman, Jerome Powell, noted that interest rates may not need to be raised further, but new policies could be introduced based on evidence.
Interest rates affect the cost of debt, which can impact demand and prices. Since the Federal Reserve’s interest rate campaign began, inflation in the United States has slowed. Despite being at its lowest point in almost two years in March, inflation at 5% is still well above the Federal Reserve’s 2% target.
In the Asian session, Bitcoin rebounded above the $28,100 level and traded near $28,766. However, this level may not be solid, and a breakthrough above it could lead BTC price toward $29,295. Bitcoin is currently facing resistance near the $29,295 mark, and a positive breakthrough above this level could push it toward the next target of $29,975. If the upward trend persists, BTC might target the psychological barrier of $30,000.
On the four-hour chart, Bitcoin has slipped below the 50-day exponential moving average, which had previously acted as a support area around the $28,800 level. The candlestick patterns currently indicate a strong bearish sentiment in the market, while the RSI and MACD indicators suggest a possible downtrend for Bitcoin’s price today. Bitcoin may encounter immediate support close to the $27,600 level, as a trendline on the four-hour chart indicates. If the price breaks through this level, BTC could head towards the next support level at $27,200.
In conclusion, while the Federal Reserve’s interest rate decision may impact the cryptocurrency market, Bitcoin’s price trend seems bearish. The market indicators suggest a possible downtrend, and Bitcoin may face immediate support at the $27,600 level. However, a breakthrough above the resistance level of $29,295 could push BTC toward the next target of $29,975.
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