Bitcoin Surges 2% Amid Positive Market Signals from U.S. Federal Reserve
Summary:
Bitcoin (BTC) experienced a 2% rise on April 4, coinciding with a growth in risk assets influenced by the U.S. Federal Reserve's positive indicators. This surge linked Bitcoin's performance to the upward trend of U.S. stock indices. Federal Reserve Chair Jerome Powell has hinted at potential interest rate cuts before the end of 2024, interpreting the current pace of the economy. Despite this, only a moderate rate reduction probability of 61% is expected for the May or June session. The rise of initial U.S. jobless claims slightly above the expected value contributed to the market activity. Traders noted potential grounds for Bitcoin's upward continuation based on the 200-period exponential moving average and the recent spurt in the relative strength index.
On April 4, Bitcoin (BTC) experienced a 2% surge following a general rally in risk assets sparked by positive indications from the U.S. Federal Reserve. Data from Cointelegraph Markets Pro and TradingView revealed BTC value reaching approximately $67,51 during the Wall Street opening on Bitstamp. This surge synchronized with the upward direction of U.S. stock indices, whereas gold took a breather from climbing after establishing new historical heights beyond $2,300.
Federal Reserve Chair Jerome Powell hinted at a softer economic policy on the preceding day, indicating possible interest rate reductions – a major incentive for risk assets – expected before 2024 concludes. Speaking at the Stanford Business, Government, and Society Forum at Stanford Graduate School of Business, Powell declared, “Since July of last year, our policy rate has been static. As outlined in the individual projections presented by the FOMC a fortnight ago, my team and I maintain our belief that this tightening cycle has likely reached its policy rate peak. If our broad expectations for the economy unfold, a majority of the FOMC participants deem it suitable to commence policy rate reductions at some point during this year.”
This statement pointed to the Federal Open Market Committee (FOMC) sessions with the subsequent meeting scheduled for May. However, current statistics from CME Group’s FedWatch tool place the probability of a modest 0.25% rate reduction in either the May or June sessions at a maximum of 61%.
Initial U.S. jobless claims recently ticked up slightly more than expected, reaching 221,000 compared to the anticipated 214,000, offering another push for market activity.
Renowned trader Pierre, analyzing the existing Bitcoin market structure, observed that the 200-period exponential moving average (EMA) on 4-hour durations was functioning as support. Noted trader Jelle maintained buoyancy, referring to the positive signs on the daily chart as probable leads for potential upward actions.
With Bitcoin’s relative strength index (RSI) soaring above the crucial 50-point mark at the daily closure. As reported by Cointelegraph, the daily RSI has been hovering around its lowest levels for quite a few months. “A hidden bullish divergence on the daily chart of Bitcoin has been confirmed!” Jelle informed his followers on X (formerly Twitter). “Such divergence typically appears during setbacks within a solid bullish tendency - hinting at the upcoming upward swing. Anticipating $82,000.”
This news piece does not encompass investment advice or suggestions. Every investment and trading step entail risk and it is recommended that readers conduct their own investigation before deciding.
Published At
4/4/2024 5:09:23 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.