Bitcoin up 1.58% on Thursday after rate-hike decline
Until macro-issues end, bitcoin remains weak
$19,250 is a level to watch on bitcoin as it recovers
Bitcoin is one of the highly watched cryptocurrencies during BTC/USD interest rate decisions. This is because cryptocurrencies have displayed a correlation with equities. Thus, equities and bitcoin become the focal point when it comes to interest decisions.
The Federal Reserve on Wednesday announced a 75 basis point increase in interest rates. The market had anticipated a similar increase in volume. Bitcoin fell below $19,000 shortly after the rate decision, but quickly recovered. At press time, the cryptocurrency was trading at $19,166 after adding more than 1.50% in 24 hours. The sharp recovery indicated that the markets had gained 75 basis points. Does this suggest that bitcoin will continue to grow?
Looking ahead, the US central bank will further increase rates at around 4.4% at the end of the year. Fed Chairman Jerome Powell did not rule out the possibility of a recession. The gloomy macro-view makes risky assets, including bitcoin, unattractive.
Bitcoin Is Recovering, But $19,250 . facing resistance
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Applying the MACD indicator, bitcoin’s momentum weakened after the Fed rate hike. The MACD line moved deeper into the bear zone as the price lost the crucial support at $19,250. At current levels, BTC is trading at its lowest level since June, or slightly below support. This level is also below its average for the last 50 days.
From a technical perspective, BTC would need to successfully retest the $19,250 level for it to be considered a potential upside. Cryptocurrency is not a recommended buy at the moment, especially in the short term.
If bitcoin fails to reclaim the $19,250 level, bitcoin could fall further. Macro factors and technical outlook remain bearish despite the latest corrections. A recovery above $19,250 invalidates a bearish outlook.