The US dollar weakened across the board, on the news, but gold shot up almost $30 on the announcement. The reason, ostensibly, is that the Fed cited a “weak global economy” as the reason for their decision (think safe haven) and have forecast two more hikes (and not canceled until further notice, as the market assumed) – again, think safe haven. Hence gold reached for its prior 2016 highs.
Bitcoin hardly showed any price reaction. Perhaps the bitcoin market expected something more austere – such as a Cyprus-style or Greek currency crisis. Perhaps bitcoin market participants are still mulling their investment options and risk in light of the Fed’s dramatic-by-implication message between the lines.
The 4-hour chart remains below the 200MA (red) in the BTCC chart, and others, but the OKCoin and Bitstamp charts are above their 200MA. Not sure why this is – perhaps a consortium is trying to pump price in those exchanges. Unfortunately, they’ve chosen an upward corrective wave and any price pumping could potentially result in a more drastic reversal.
If the exchange charts begin to confirm one another’s indications – whether to the upside or the down – that’s when we can confidently start building position.
Although we are getting buy signals in most timeframes price remains at (and mostly below) its descending 1-day 20MA in all exchanges. Until we see an advance above the 1-day 20MA we have no good reason to trade this choppy wave to the upside.
Let’s remain very patient with the current price action.
The price wave continues resembling a sideways correction that is printing lots of zig-zagging 3-wave structures. The longer such a corrective triangle drags out, the more severe the subsequent sell-off could be. If the market can start tracing some longer green candles to higher highs, the bias would turn near-term bullish.
Bitfinex Depth Chart and Buy/Sell Volume
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Bitcoin price charts from TradingView.
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