The bitcoin rally that saw the number one crypto currency go from $17,500 back to $24,000 in just 5 weeks ran out of steam over the last week and has fallen back to $21,000. However, short-term RSIs have reset and it looks as though bitcoin may continue its rally depending on news to come out of the Federal Reserve FOMC meeting today.
The day has dawned fair for bitcoin and its local low of around $20,700 has been left behind as the king of the cryptocurrencies has moved up in excess of $21,300 so far today – an increase of 3%.
Many traders and speculators on social media are still calling for a $10k bitcoin, stating that the flush-out is still not complete and that capitulation should be a lot worse.
A recent CoinTelegraph article expressed the concern that the $24,300 resistance was “not a good sign”, and that today was a “macro day of reckoning” for risk assets.
This was because the Federal Reserve’s FOMC meeting takes place today, and the expectation is a 75 basis points rate rise, with an outside chance of 100 basis points, both of which would be concerning for bitcoin according to the article.
Further to this, the article quotes an analyst known as “Crypto Tony” who gives the view on his daily Twitter post that he remains bearish as long as bitcoin remains below the range high of $22,200.
Whatever comes out of the FOMC meeting, there is likely to be a lot of choppiness in the bitcoin price. The 0.75% rise is expected and therefore baked in, but should the 1% rise hit the market then look for a lot more tumult.
However, many signs are in the charts that bitcoin has indeed already touched bottom and that we are now in a sideways accumulation phase readying for the next bull market.
Yes, bitcoin and crypto have really borne the brunt of being the perceived most risky assets, but now that the whole crypto sector has been beaten down to such an extent, most sellers would arguably have sold and left the market.
It could also be argued that the downside left to bitcoin is tiny compared with the upside of more buyers coming in, once they realise that the dollar and all other fiat currencies are continuing to be debased and that inflation is not likely to be suppressed for any reasonable length of time.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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