{"id":27345,"date":"2023-07-27T00:52:37","date_gmt":"2023-07-27T04:52:37","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=27345"},"modified":"2023-07-27T00:52:37","modified_gmt":"2023-07-27T04:52:37","slug":"fomc-delivers-expected-0-25-rate-hike-bitcoin-holds-steady-above-29000","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/07\/27\/fomc-delivers-expected-0-25-rate-hike-bitcoin-holds-steady-above-29000\/","title":{"rendered":"FOMC Delivers Expected 0.25% Rate Hike, Bitcoin Holds Steady Above $29,000"},"content":{"rendered":"

The Federal Reserve\u2019s (Fed) decision to raise the Federal Funds Rate (FFR) by 25 basis points to 5.50%, the highest level since February 2021, had little impact on the cryptocurrency market and Bitcoin (BTC), with the event described as \u201cvery vanilla<\/a>\u201d by the Journalist Ted Talks Macro.\u00a0<\/p>\n

The FOMC indicated that achieving its 2% inflation target still has a long way to go and that it will take a data-dependent approach to future rate hikes.<\/p>\n

While some investors had been hoping for a more hawkish tone from the Fed, the central bank\u2019s cautious approach was seen as a sign that it is still concerned about the potential impact of its monetary policy on the broader economy.\u00a0<\/p>\n

According to Ted, the full effect of tightening is yet to be felt, and getting back to the inflation target may require below-trend growth and labor market softening.<\/p>\n

Despite the Fed\u2019s decision to raise rates, they may raise them again in September, depending on the data.<\/p>\n

The Fed\u2019s decision to keep Quantitative Tightening (QT) unchanged was also a sign that the central bank is taking a measured approach to monetary policy.<\/p>\n

The markets reacted positively to the Fed\u2019s decision, with Bitcoin and US equities both higher. Many investors interpreted the event as a signal that the Fed is getting closer to hitting the pause button on rate hikes, which could be positive for risk assets in the near term.<\/p>\n

Bitcoin Bulls Charge Forward As Sell Wall Disappears<\/h2>\n

After the Federal Open Market Committee (FOMC) announced a 0.25% increase in interest rates, crypto market and data analysis firm Material Indicators has suggested <\/a>that a sell wall at the $29,400 level has vanished.\u00a0<\/p>\n

This level is just above Bitcoin\u2019s current price, which currently stands at $29,300 as of writing.\u00a0<\/p>\n

According to Material Indicators Firechart, a significant level has cleared for Bitcoin, allowing the cryptocurrency to breach this zone and reclaim higher price levels. However, in the short term, Bitcoin\u2019s 50-day Moving Average (MA) may present an obstacle, as it currently sits above the cryptocurrency\u2019s current price.<\/p>\n

Despite this challenge, there is good news for Bitcoin bulls, as the cryptocurrency\u2019s Average Directional Index (ADX) has experienced a significant drop and is approaching the neutral level.\u00a0<\/p>\n

As seen in the 1-day chart below, this drop in ADX is often followed by a strong uptrend, potentially propelling Bitcoin back above the $30,000 mark. Moreover, Bitcoin may be able to trade above its 50-day MA and regain it as a support level, as it has been doing for the last month before its 5% decline last week.<\/p>\n

These technical indicators suggest that Bitcoin may be poised for a rebound shortly, which could be welcome news for investors and traders alike.<\/p>\n

Featured image from iStock, chart from TradingView.com <\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The Federal Reserve\u2019s (Fed) decision to raise the Federal Funds Rate (FFR) by 25 basis points to 5.50%, the highest level since February 2021, had little impact on the cryptocurrency market and Bitcoin (BTC), with the event described as \u201cvery vanilla<\/a>\u201d by the Journalist Ted Talks Macro.\u00a0<\/p>\n

The FOMC indicated that achieving its 2% inflation target still has a long way to go and that it will take a data-dependent approach to future rate hikes.<\/p>\n

While some investors had been hoping for a more hawkish tone from the Fed, the central bank\u2019s cautious approach was seen as a sign that it is still concerned about the potential impact of its monetary policy on the broader economy.\u00a0<\/p>\n

According to Ted, the full effect of tightening is yet to be felt, and getting back to the inflation target may require below-trend growth and labor market softening.<\/p>\n

Despite the Fed\u2019s decision to raise rates, they may raise them again in September, depending on the data.<\/p>\n

The Fed\u2019s decision to keep Quantitative Tightening (QT) unchanged was also a sign that the central bank is taking a measured approach to monetary policy.<\/p>\n

The markets reacted positively to the Fed\u2019s decision, with Bitcoin and US equities both higher. Many investors interpreted the event as a signal that the Fed is getting closer to hitting the pause button on rate hikes, which could be positive for risk assets in the near term.<\/p>\n

Bitcoin Bulls Charge Forward As Sell Wall Disappears<\/h2>\n

After the Federal Open Market Committee (FOMC) announced a 0.25% increase in interest rates, crypto market and data analysis firm Material Indicators has suggested <\/a>that a sell wall at the $29,400 level has vanished.\u00a0<\/p>\n

This level is just above Bitcoin\u2019s current price, which currently stands at $29,300 as of writing.\u00a0<\/p>\n

According to Material Indicators Firechart, a significant level has cleared for Bitcoin, allowing the cryptocurrency to breach this zone and reclaim higher price levels. However, in the short term, Bitcoin\u2019s 50-day Moving Average (MA) may present an obstacle, as it currently sits above the cryptocurrency\u2019s current price.<\/p>\n

Despite this challenge, there is good news for Bitcoin bulls, as the cryptocurrency\u2019s Average Directional Index (ADX) has experienced a significant drop and is approaching the neutral level.\u00a0<\/p>\n

As seen in the 1-day chart below, this drop in ADX is often followed by a strong uptrend, potentially propelling Bitcoin back above the $30,000 mark. Moreover, Bitcoin may be able to trade above its 50-day MA and regain it as a support level, as it has been doing for the last month before its 5% decline last week.<\/p>\n

These technical indicators suggest that Bitcoin may be poised for a rebound shortly, which could be welcome news for investors and traders alike.<\/p>\n

Featured image from iStock, chart from TradingView.com <\/p>\n

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