Bitcoin Rebounds to $70,000 Amid Cautious Stance on Rate Cuts by Fed Chair
Summary:
Bitcoin's value rebounded to $70,000 following positive Q1 trading. The Federal Reserve Chair, Jerome Powell's cautious approach to interest rate cuts seemingly boosted Bitcoin's value. Looking ahead, Bitcoin's price progression is being carefully observed with a focus on the forthcoming weekly, monthly, and quarterly candle close. The MACD oscillator on daily durations is also on track for a possible surge in Bitcoin's price beyond record highs. However, readers are reminded that all investment decisions carry inherent risk and should be thoroughly researched.
Bitcoin (BTC) rebounded to $70,000 after the conclusion of daily trading on March 29, as the sterling first quarter performance neared its end. BTC/USD 1-hour chart. Source: TradingView
"Prudent" stance on interest rate reductions upheld by Jerome Powell, Chair of the US Federal Reserve, according to data from CoinTelegraph Markets Pro and TradingView. Leading into the weekend, the previously established peak of $69,000 offers a tentative support for Bitcoin's price.
During the latter part of the day, Bitcoin's value increased by roughly $1,000, seemingly boosted by remarks from Powell. He maintained a relaxed stance on factors including inflation and economic prospects during a dialogue at the Macroeconomics and Monetary Policy Conference in San Francisco, California.
He emphasized that immediate rate cuts were not a priority for the Federal Reserve. This decision holds significance for risk assets. He stated: "Currently, growth and the labor market are robust while inflation is under control. Our decision will be made cautiously."
Rate prediction for the Federal Reserve. Source: CME Group
A 0.25% decrease at the June Federal Open Market Committee (FOMC) meeting is anticipated by markets with a prediction probability of 61%, according to information from the FedWatch Tool by CME Group.
On March 29, Wall Street's holiday, the Personal Consumption Expenditures (PCE) Index (the preferred inflation measure for the Fed) met expectations at 2.5%.
Key BTC price levels determined by price analysis
Continued emphasis is on the forthcoming weekly, monthly, and quarterly candle close, predicting BTC price progression for the next steps.
Analyst and popular trader Rekt Capital suggest $69,000 remains a significant threshold. Closing above this level will set a new record for Bitcoin.
On X (previously Twitter), he anticipated, "The Weekly Range will see Bitcoin continue to fluctuate and move erratically until the Weekly Candle Close. Any Weekly Candle Close above the old peak of $69,000 would bring Bitcoin closer to breaking out. Anything else happening in between is consolidation."
BTC/USD chart. Source: Rekt Capital/X
Positive on-chain indications are in focus for some traders like Kevin Svenson. He featured the moving average convergence/divergence (MACD) oscillator for daily durations in his chart posted on X. This chart implied that MACD is "set for a positive cross," which could coincide with a potential BTC price surge past the highest-ever level near $74,000.
BTC/USD chart featuring MACD data. Source: Kevin Svenson/X
Readers should note that this article is not financial advice or investment recommendations. All trading and investing moves carry inherent risk and should be based on individual research and decision-making.
Published At
3/30/2024 3:05:00 PM
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