The price of bitcoin is beginning to exhibit indications of instability, with $39,000 acting as near-term barrier.
As Wall Street trade resumed on March 15, Bitcoin (BTC) began to display new volatility ahead of the US Federal Reserve’s important interest rate decision.
It’s crunch time for the Fed when it comes to inflation.
After failing to regain $39,000 on the day, data from various analysts showed an approximately $500 drop in BTC/USD.
Bulls were disappointed after an overnight push towards $40,000, setting the stage for a lacklustre performance leading up to the Fed announcement.
Due to the necessity to preserve equilibrium in a market already bloated from liquidity injections and uncertain due to the Russia-Ukraine war, economists anticipated that more than a 0.25 percent rate hike was unlikely.
“The bottom line is that we will proceed,” Fed Chair Jerome Powell told US legislators earlier in March. “But we will proceed cautiously as we learn more about the repercussions of the Ukraine war.”
At the time of writing, Bitcoin was volatile on shorter time frames but range bound on longer ones, a pattern that had characterised the largest cryptocurrency on numerous times throughout 2022.
Even the announcement on March 14 that the European Union had rejected a legal amendment prohibiting the provision of services incorporating proof-of-work cryptocurrency had no effect on the current situation.
A definitive breach of the 2022 range high or low, according to popular expert Matthew Hyland, was now required to entertain a new perspective.
The only real move will be when #Bitcoin breaks $46k or falls below $33k
Everything else is just noise!!! pic.twitter.com/ujmVzYQq1v
— Matthew Hyland (@MatthewHyland_) March 15, 2022
“It’s noteworthy that we’ve spent more time near $46K than $33K,” he added in a follow-up comment.
“Could you make the case that demand is increasing while selling pressure is waning? In any case, it won’t stay in this range indefinitely.”
The Fed was scheduled to make its announcement at 2:00 p.m. Eastern Time on March 16, followed by a half-hour press conference by Powell.
The mood “compares” to the bear market of 2018.
A longer-term perspective on Bitcoin and its ranges aimed to persuade jittery market players that all was not lost on March 15.
Despite the negative attitude in the crypto market, popular Twitter account “Cryptobirb” reasoned that BTC/USD has managed to establish a run of higher highs and lower lows since the start of 2021.
It's intriguing how flat $BTC performance has been for over a year already, while the traders' sentiment compares to the hopeless depths of the 2018 bear market. The longer #Bitcoin has moved sideways, the more depressed the traders got. Yet, the market's made higher high and low pic.twitter.com/0sHLu8nTuB
— CRYPTO₿IRB (@crypto_birb) March 15, 2022
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
