The Fed’s decision on interest rates will be made on Wednesday, and everyone is talking about it, including Bitcoin (BTC) investors.
The long-awaited Fed move is coming this week
As you can follow in the news of Kriptokoin.com, Bitcoin (BTC) increased the volatility to the weekly close on March 13 as the markets prepare for geopolitical and macroeconomic clues. Data from TradingView followed BTC as it approached testing the $38,000 support again on Sunday. According to crypto analyst William Suberg, BTC ended the week calmly on Wall Street, proving similarly calm as the situation both inside and outside crypto continued without surprise over the weekend.
Now, beyond Sunday’s close, attention is focused specifically on the upcoming Federal Reserve’s decision on interest rates. The analyst notes that by March 16, the size of the default rate hike could provide temporary volatility or even a longer-term trend change for risky assets, depending on its size.
The situation between Russia and Ukraine similarly remains the main focus amongst negotiators, amid weak signs that reconciliation may happen sooner or later.
“Bitcoin (BTC) behavior is like watching paint dry”
According to tracked sources from Material Indicator, Bitcoin chart is ahead of Fed’s decision It showed the spot price between the 50-week and 100-week moving average (WMA). On that day, Twitter followers were briefed as “BTC price continues to fluctuate between 50 and 100 WMA” and made the following assessment:
Typical volatility is expected around the weekly close. The market is worried about Putin and the pending Fed Funds Ratio announcement. Both are catalysts for the results the graphs point to.
Popular trader and analyst Crypto Ed, meanwhile, described the weekend move as ‘slow’ in the absence of significant support or resistance retests, while fellow analyst Matthew Hyland described Bitcoin’s behavior as ‘slow’. He likened it to watching the paint dry. But for stocks, it’s been a welcome rest after a week of heavy drops. Economist Holger Zschaepit tweeted:
Global equities are at the upper end of this week by 2.5 percent as investors take positions ahead of developments in Ukraine, stagflation fears, a hawkish trend from the ECB and next week’s FOMC meeting. Another trillion dollars lost. Global equities are now worth $107.5 trillion, equivalent to 127% of global GDP.
Russian stock market remained closed during the week and likewise at least on March 18 No stock transactions will be made until
Major pullback ‘cannot be excluded’ for Bitcoin, Decentrader says
However, following predictions of a more substantial Bitcoin correction, recommendations for a potential ‘buy down’ opportunity have also begun to emerge. According to trade platform Decentrader, Bitcoin’s 200WMA and logarithmic growth curve just above $20,000 and $30,000 respectively could create potential macro support levels should such an event occur. In its latest market update released on Friday, Decentrader argued that the scenario “cannot be ignored” and shared the following analysis:
Such a crash would hit the bottom of the logarithmic growth curve that continues to climb Bitcoin and is now above $30,000 for the first time. can pull right. Beyond that is 200WMA and it is currently surging at $20,500. However, its position in the market will turn into a medium-term bear market.
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