Bitcoin (BTC) rose near $ 30,000 on May 18 after further comments from the US Federal Reserve prompted volatility.
Analysts: The ‘biggest risk’ is the further feed rate increases
Data from Cointelegraph Markets Pro and TradingView showed the BTC / USD pair consolidating within range that has been in place since May 12th.
The pair broke away after Fed Chairman Jerome Powell gave his thoughts on economic policy at the Wall Street Journal’s Future of Everything festival.
“ I do not know whether financial conditions have been tighter for a long time he told the paper’s chief economics correspondent Nick Timiraos in an interview.
Mr Powell confirmed that the 50 basis point rise in prime interest rates would continue at Fed Fed Open Markets Committee (FOMC) meetings and could reach “neutral” levels in the fourth quarter. However the rises could continue thereafter if necessary to further control inflation.
With traditional markets already priced in such a case, overall volatility was limited as Powell avoided surprise.
BTC / USD fell sharply to $ 29,500 before surpassing Powell’s views.
With dangerous assets set for difficult times as the financial crunch continues, crypto market watchers have had little in the way of very tactical news.
” Reminder. This is the biggest risk for the markets “, Macro-analyst Alex Krueger responded in a series of Twitter posts on the potential for continued rate hikes into next year:
“Every Nutrition officer has a different view of what is ‘neutral’. Estimates are in the range of 2-3%. Futures markets are now expecting a 3.25% rate by December. »
According to the CME Group’s FedWatch tool, markets expect the target rate to be between 275 and 300 basis points at the December FOMC meeting.
$ 33,000 “means” for the sequel
In the short term, some have seen continued relief for BTC.
Read also: Fear and Saint Index hits lowest level since March 2020 as bitcoin price reaches $ 30,500
” We had a nice close above the low in the $ 28,800 range as well as marking the $ 30,000 minimum on the initial recession in May 2021. The next high-frequency resistance is the 33 000 $ area. Testing on this area makes sense “, yes abstract the popular trading account Daan Crypto Trades in its latest update focused on bitcoin.
Meanwhile, another account, DonAlt, portrayed the $ 34,500 as a crucial break to take a more bullish view of BTC.
This is what I am looking at, we are claiming a $ 34.5k return and I think there is good reason to be bullish towards at least $ 44k.
While we are below $ 34.5k bear slowing is allowed, less than above. pic.twitter.com/CzLY89rPAa
– DonAlt (@CryptoDonAlt) May 17, 2022
$ BTC: Here’s what I’m looking at, $ 34,500 is coming in and I think there’s good reason to be at least $ 44,000.
As long as we’re under $ 34,500 upside down, it’s less so. pic.twitter.com/CzLY89rPAa
– DonAlt (@CryptoDonAlt) May 17, 2022
As Cointelegraph reported, the number of participants is still in favor of returns of under $ 23,800, the lows seen last week at the height of the Terra LUNA and TerraUSD (UST) implications.
” It takes a long time to minimize, so don’t expect them in a day or two “, yes declared Crypto trader Tony to his Twitter followers on the day.
“We will probably get support, bounce back for some relief and manage to take on late shorts and continue the trend. »
Others believe a $ 20,000 reduction is unlikely.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.
