Bitcoin price dips by nearly 3% in response to 25 basis point rate hike by the Federal Reserve.

The Impact of Federal Reserve’s Rate Hike on Bitcoin’s Price

Bitcoin, the pioneer of cryptocurrencies, experienced a slight 0.50% increase in trading price on Thursday, currently standing at 29,464. However, in the past seven days, it faced a notable dip of nearly 3% in response to the Federal Reserve’s decision to raise the federal funds rate by 25 basis points.

Despite the economy experiencing moderate growth, the central bank’s move to tighten monetary policy has led to some downward pressure on Bitcoin’s price. Investors and traders are closely monitoring the market’s reaction to this rate hike as it may influence the cryptocurrency’s future performance.

The Federal Reserve’s decision to raise the federal funds rate, despite moderate economic growth, had a mixed impact on Bitcoin’s price. While the decision was anticipated and already factored in, BTC saw some improvement the following day. This indicates that the rate hike was already priced in and reflects a certain level of resilience in the cryptocurrency market.

The objective of the rate hike was to keep inflation under control, as per the latest report from the Federal Open Market Committee (FOMC). Fed Chair Jerome Powell mentioned that a rate change in September is possible, but a pause is also a possibility. The committee has not made any decisions on future meetings yet.

In addition to the Federal Reserve’s rate hike, the European Central Bank (ECB) is predicted to increase interest rates by another 25 basis points, even though the Eurozone is officially in a recession. The Japan Central Bank is also debating whether to hike interest rates. These factors could exert further selling pressure on Bitcoin and the cryptocurrency market as a whole.

Technical Analysis and Bitcoin Price Prediction

Taking a technical look at Bitcoin, it has found support around the $28,850 level, evident from a series of Doji and spinning top candles closing above this level. Currently, it is hovering just below the significant resistance level at $29,500, also reinforced by a downward trend line visible on the four-hour timeframe.

The recent candle’s close suggests the possibility of a minor correction in BTC price today. However, it is worth noting that Bitcoin has already surpassed the 50-period exponential moving average (EMA), which was previously acting as resistance around $29,250. Now, this level is acting as support, and a close above this stable support level could signal a continuation of the bullish trend.

Analyzing the leading technical indicators such as the relative strength index (RSI) and moving average convergence divergence (MACD), both indicate that the chances of the bullish trend persisting remain strong as they are holding in positive territory. If BTC manages to breach the $29,500 resistance level, the next technical resistance will likely be around $30,000, which also holds psychological significance.

Beyond this, the next resistance may be found around $30,350. On the contrary, if BTC falls below the $28,850 support level, the next support area remains around $29,000. A drop below this level may lead to a decline toward $28,850.

Overall, the technical analysis suggests a cautiously optimistic outlook for Bitcoin, with potential resistance and support levels to monitor closely in the current market conditions.

Top 15 Cryptocurrencies to Watch in 2023

As the blockchain industry continues to evolve, it is essential to stay updated on the most promising cryptocurrencies. To assist in navigating the dynamic landscape of digital assets, we have curated a list of the top 15 cryptocurrencies to watch in 2023, sourced from industry professionals at Industry Talk and Cryptonews.

These meticulously chosen digital assets offer valuable insights and expert recommendations. By exploring this carefully curated list, investors can uncover the possibilities presented by these cryptocurrencies and stay ahead of the competition. However, it is important to note that investing in cryptocurrencies carries considerable risk, and extensive research is always advised.

To summarize, the recent rate hike by the Federal Reserve had a mixed impact on Bitcoin’s price, with a slight increase followed by a minor correction. Technical analysis suggests a cautiously optimistic outlook for Bitcoin, with potential resistance and support levels to monitor closely. Additionally, staying informed about the top 15 cryptocurrencies to watch in 2023 provides invaluable insights for investors navigating the ever-changing blockchain landscape.

Bitcoin price dips by nearly 3% in response to 25 basis point rate hike by the Federal Reserve.