Bitcoin Battles Recovery Following Weekend Volatility: Halving and Federal Reserve Cues Awaited
Summary:
Bitcoin (BTC) enters recovery mode after experiencing significant volatility over the weekend. As the crypto and risk assets wait for cues from the US Federal Reserve amidst the ongoing inflation battle, BTC struggles to reclaim its previous peak. Analysts highlight the importance of resetting the 21-period exponential moving average (EMA) on the 4-hour chart and the relative strength index (RSI) climbing above 50. Meanwhile, Bitcoin miners anticipate the event of BTC block subsidies halving next month. The market also awaits the upcoming Federal Open Market Committee (FOMC) meeting's decision on interest rates.
Entering recovery mode, Bitcoin (BTC) kicks off the new week trying to bounce back after a turbulent weekend resulted in substantial losses. Struggling to regain its previous peak, BTC's price activities face continued selling pressure. A critical week on the macroeconomic front lies ahead, with volatile trading conditions expected to continue as both crypto and risk assets eagerly await signals from the U.S. Federal Reserve amidst the ongoing inflation battle.
BTC/USD operates in a pivotal area that needs to be regained for the price discovery to advance. With Bitcoin's next block subsidy halving inching closer, it seems to be echoing a traditional pre-halving dip. The possibility of this event influencing BTC's price trajectory remains a highly debated topic. Some experts suggest that the current surge to hit record highs could conclude earlier compared to past price cycles.
Examining the current landscape, Bitcoin's relative strength index (RSI) needs to leap over 50, and the 21-period exponential moving average (EMA) on the 4-hour chart needs to be recovered next. Bitcoin's unusually intense weekend selling pressure has been attributed to a single hedge fund's position unwrapping possibly coupled with an offloading by smaller BTC holders.
Although BTC ended the week at just below $68,400, its second-highest weekly closure ever, the volatility resulted in a reset in both open interest and funding rates. CoinGlass monitoring resource data showed significant long liquidations over several days amounting to more than $300 million. Bitcoin miners are looking forward to the event of BTC block subsidies halving next month. Likely bearing the risks for Bitcoin holders, there may follow a traditional shift - downwards initially, then trending upwards.
The Federal Open Market Committee (FOMC) is expected to hold their next meeting on March 20, and market enthusiasts eagerly wait for the decision on interest rates and Jerome Powell's comments. With ongoing inflation, chances of a rate cut are dim. Another topic of interest is the actions of long-term holders (LTHs), or entities maintaining coins for at least 155 days, who have distributed nearly 600,000 BTC within a month, contributing to increased selling.
Published At
3/18/2024 1:03:26 PM
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