The bitcoin price chart has reclaimed position above the $680 (Bitstamp) price level. For now it looks like further correction is ruled out. A Fed rates announcement, later today, hangs over global markets.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
The bitcoin price chart dipped below $680 support for most of today before climbing above this critical level at the time of writing. The market does not want to pursue additional correction, but before we assume trend is up, it would be prudent to wait for the Fed rates announcement at 19h00 UTC.
At the previous Federal Open Market Committee announcement, bitcoin disappointed by selling off 3 hours prior to the event. The bitcoin market had either preempted the announcement, or had simply disregarded this important economic calendar event. The reaction today remains to be seen.
The Fed has been threatening to raise interest rates on signs of US economic recovery. However, dismal employment data released last week has led markets to the conclusion that a rates hike, at today’s FOMC meeting, is as good as ruled out.
Gold bugs are expecting a continuation of the gold rally; for stocks to tank; and the Bitcoin ecosystem remains eager for additional advance. Whatever the Fed does may be sufficient to catalyze markets into mid-year trends.
Bitcoin price is skirting around $680 (Bitstamp) support, and must break through $700 to open advance to $750. Continuing advance is technically possible, the market only has to resume buying. A major economic announcement by the Fed, today, should see markets take direction. Global markets expect the Fed to hold back on a rates increase and for current trends to resume. If the Fed does the unimaginable and actually raises rates, would that reverse trend across markets? Hmm.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
Image from Shutterstock.