As markets keep traders on their toes, Bitcoin price motion approaches $45,000 once more.
Bitcoin (BTC) hit daily lows on March 2 before bouncing sharply as the US Federal Reserve made new comments, adding to macro volatility.
Powell says a rate hike in March is “reasonable.”
BTC/USD dipped to $43,350 on Bitstamp before the Wall Street open on Wednesday, according to data from several analysts.
However, as soon as trade began, the pair began to recover, and it was already back above $45,000 at the time of writing.
The volatility came as a result of Fed Chair Jerome Powell’s latest announcement, in which he offered specific notice of a crucial rate hike coming this month for the first time.
“Our monetary policy has been and will continue to respond to the changing economic situation,” he said.
“Our net asset purchases have been phased off. We anticipate it will be appropriate to raise the target range for the federal funds rate at our meeting later this month, with inflation well above 2% and a solid job market.”
Markets had already factored in the hike, but uncertainties persisted about the magnitude of the increase and how many more could be implemented by 2022. Powell went on to say that the Russia-Ukraine conflict posed “very unpredictable” economic ramifications for the United States.
Bitcoin, however, shrugged off any concerns about the announcement, rising to near-local highs near $45,000.
BTC/USD was now in something of a “gap” in terms of order books, which might start a run towards $48,000 the next region of sell-side resistance, according to trader and analyst Rekt Capital.
#BTC continues to hover below the blue 50-week EMA
Breaks beyond this EMA have preceded immense upside
— Rekt Capital (@rektcapital) March 2, 2022
It was also interesting to see if the 50-day exponential moving average (EMA) could be switched from bearish to bullish.
LUNA gains indicate a rebound to all-time highs of $100.
Altcoins remained solid elsewhere, with Ether (ETH) aiming to reclaim the $3,000 level.
Terra (LUNA) was the most valuable cryptocurrency in the top ten by market capitalization, maintaining a winning streak that might see it surpass $100 after being rejected at the start of the year.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.