Bitcoin: Finally back to $ 40,000?

The Fed announcements attracted the crypto market. To rise more than 3% in a few minutes, Bitcoin even came (briefly) to test the $ 40,000 resistance level. Price level should be decisive in the coming days for a possible bullish reversal.

Bitcoin and the crypto market sensitive to monetary policy!

It’s a secret for anyone. As with the equity market, the crypto market is also particularly sensitive to monetary policy decisions. Like all so-called “risk” markets. The market was expecting two rate hikes Wednesday and it was served. Despite an increase in its prime rate by 0.5 points, the biggest increase in 22 years, the Fed meeting had a positive impact on the price of Bitcoin.

Shortly before the end of the FOMC meeting, the asset saw a metric rise when Jerome Powell ruled a 75 basis point rise in the key rate. So the number 1 encryption asset rose more than 3% in a few minutes by flirting with it the $ 40,000 level. A level that the market has only tested once (40,002 dollars at the height).

After the mother of cryptocurrencies, most of the crypto assets were also showing in the lock. So the price of Ethereum recorded an increase of more than 5%, like most major altcoins. At the time of writing, the asset is thus trading at about $ 37,000. If you want to buy Bitcoin, or any other cryptocurrency, you can go to eToro, a trusted platform for French users.

The key threshold of 40,000 dollars!

To rekindle the positive dynamics around Bitcoin, it will be necessary to keep it close to $ 40,000. If we stick to the chart analysis, Bitcoin has just broken its resistance level over 1 month. While this clearly does not guarantee a reversal of the situation, it clearly does The mother of cryptocurrencies slows down the blood for the past few weeks.

According to Joe Orsini, director of research at Eaglebrook Advisors, the nutrition calendar is sure to play a role in the medium term. He therefore considers:

A less aggressive inflated policy would be bullish for Bitcoin, ether and digital assets. Digital assets continue to outperform traditional stocks.

Are we ahead of a bullish reversal?

This is a difficult question to comment on. A few weeks ago, the price of Bitcoin was flirting with the $ 48,000, giving hope for a quick return of over $ 50,000. This case is now contradicted by the facts. At least in the short term.

Given a better understanding of how Bitcoin and the crypto market as a whole might evolve, stock market indices provide some interesting features. Taking the S&P 500 as an example, the index is now close to its annual low. Annual low which then corresponds to the beginning of the war in Ukraine. A similar observation can be made for the Dow Jones. If these levels of support were permanently exceeded, they could encourage a positive momentum in risk markets. And have a positive impact on the price of digital assets.

The NFP report in the United States could be relaxed around that $ 40,000 level. This report, which covers job creation in the non – agricultural sector, often plays a role in valuing markets at risk. In the United States, employment figures are back now levels close to those before the health crisis.