Bitcoin Price May Jump After Fed Interest Rate Decision

Bitcoin Price May Jump After Fed Interest Rate Decision

The price of Bitcoin (BTC) is set for a reversal of sentiment after bearish moves that have led to a downtrend since April. The price of BTC is currently being maintained at around $38,000. Rising relative strength index (RSI) shows that investors are again ready to take risks. Expect to see a 15% jump in BTC price to $44,000 following the Fed’s rate decision tonight.

  • Bitcoin price sees a base level built at $38,000.
  • The RSI is rising indicating bullish momentum.
  • Expect a rally above $42,000 to $44,000.

Bitcoin Price Expected to Jump 15% Following Fed Decision

The price of bitcoin shows bulls returning to the scene as the RSI rises, showing that demand volume is gaining momentum outweighing selling volume. With this rebalancing, the price of Bitcoin is moving away from $38,000, the level that was held after the bulls defended it earlier this month and at the end of April. This, combined with the RSI at the bottom of the scale, made the bears enjoy the pounds and see them disappear for a while.

Thus, the price of bitcoin is in an area where further growth is possible, given the lack of significant bearish volume. Since the bulls will be able to drive prices higher, first expect the price of bitcoin to try to reach $42,000 around this dotted blue line, which is the same as the 55-day simple moving average (SMA). This would be ideal for a long time test or re-entry, and could see the price rise to $44,088, a historical reversal that coincides with this month’s R1 monthly resistance level.

Bitcoin (BTC/USD) daily chart

Risk sentiment could change even more as investors watch the tough reporting season for US equities unfold. While some majors have yet to report earnings, a downturn in global markets could easily be triggered before or after the close of trading, wiping out all intraday gains and pushing prices down. The price of Bitcoin could fall to $36,709 and if it goes above this mark, it is likely to go down to $32,649.

Philip Lagert, FXStreet

Former Forex Seller/Trader at ING, Trade Execution Expert.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, so you should do your own research when making a decision.

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Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell foreign exchange contracts or CFDs. Although the information contained herein has been obtained from sources believed to be reliable, the author does not warrant its accuracy or completeness and shall not be liable for any direct, indirect or consequential damages that may result from anyone relying on such information.

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