Bitcoin Nears $60,000 Amid Market Volatility and Rising US Federal Rate Concerns
Summary:
Bitcoin (BTC) drew near $60,000 as the markets opened on March 19, despite previous weakening. As the US Federal Reserve's interest rate decision loomed, the largest crypto faced selling pressure, leading to an 8% drop. Several factors were seen as headwinds for Bitcoin, including the first rise in Japan's Central Bank rates since 2007 and significant outflow from the Grayscale Bitcoin Trust. Experts observed this trend and predicted a potential downturn for BTC/USD at $60,000, yet, experienced traders remained positive about Bitcoin's overall strength.
As Wall Street commenced its activity on March 19, Bitcoin (BTC) verged near a $60,000 mark, unperturbed by the preceding sluggishness in its rates. Data collated from Cointelegraph Markets Pro and TradingView hinted at BTC/USD poised to challenge the $62,000 mark in an unstable environment. Following the day's closure, the preeminent cryptocurrency faced an influx of selling pressure leading to nearly 8% depreciation.
Added tension was apparent as an impending decision on interest rates from the United States Federal Reserve approached on March 20. Concurrently, there was an upswing in the value of the U.S. dollar with the U.S. dollar index (DXY) breaching the 104 mark before stabilizing.
Analysts eyeing the market linked this trend to a multitude of factors challenging Bitcoin. Elements such as the first increase in Japan's Central Bank rates since 2007 and a high-volume outflow from the Grayscale Bitcoin Trust (GBTC) measured at a historic $642 million on March 18.
Michaël van de Poppe, founder and CEO of MNTrading, hinted at a near bottoming process while highlighting the promising prospects due to the hemorrhaging altcoins. He, along with other observers, speculated a potential downturn for BTC/USD at the $60,000 juncture.
Despite the fluctuations, seasoned traders remained bullish about Bitcoin’s overarching vigor. Peter Brandt, a experienced trader who has accurately prognosticated multiple BTC price landmarks, regarded the running correction as a healthy sign reinforcing the primary bull trend. He pointed out the likelihood of a head and shoulders pattern on daily timelines that might precipitate a drop to $55,000. However, he cautioned that such a turn of events would still align with BTC/USD’s wider ascending arc.
Despite the lack of a successful conversion of the past highs at $69,000 from 2021 into a robust support, faith in the bull market persists. This report doesn't provide any financial advice or recommendations. Each financial or trading action carries weight and risk, hence it is advised that readers undertake independent research prior to committing to a decision.
Published At
3/19/2024 6:17:46 PM
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