Bitcoin holds steady after FOMC statement
Cryptocurrency linked to wider crypto concerns
BTC needs to move higher above $16,500
Bitcoin (BTC/USD) rose slightly on Thursday following the statement from the US Federal Reserve. The cryptocurrency was held at the $16,500 level following a soft stance from the authorities. BTC was already moving ahead of the comment as investors were optimistic that the Fed would calm down on rate hikes.
Friday’s Fed statement confirmed market expectations. Officials indicated that they would slow down the pace of interest rate hikes. The Fed cited the uncertain lag associated with monetary actions on inflation and economic health. The Monetary Committee ignored the fourth 75 basis point hike. While this did not indicate that interest rates would remain low, it did give a soft landing to the markets.
Despite the somewhat positive signal from the Fed, bitcoin price should be viewed in a broader risk appetite. Notably, the crisis of confidence created by the collapsed FTX exchange could be prolonged. Combined with a possible slowdown, we may be waiting a while to see continued growth. The slow pace of gains recorded by cryptocurrencies after the dovish statement confirms a bearish market. For a technical reader, bitcoin is not yet bullish.
Bitcoin Struggles To Rise Above $16,500
On the daily chart, there was a slight increase in bitcoin price after finding support at $15,700. However, the buyers are facing challenges in taking the cryptocurrency above the $16,500 level.
Although the RSI has improved slightly from near oversold levels, the reading is still below the midpoint.
What next for bitcoin?
A mixed trading outlook suggests that the price of BTC could go higher or lower. There is no confirmation until the cryptocurrency clears the $16,500 level. This will allow the bulls to accelerate towards the $19,000 resistance.
If the bear pressure increases, a break below $15,700 is still on the cards. This would pit bitcoin at a potential price of $14,000 and $11,000.
In the words of bitcoin enthusiast Michael Saylor, if you buy btc In less than four years, you’re “just guessing.” Long-term buyers will still find BTC attractive, not necessarily for four years, but until the next bull run.
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