Bitcoin price traded slightly higher ahead of the U.S. Federal Reserve’s policy announcement
Most major cryptos rose slightly a day before the U.S. central bank was scheduled to announce its decision on a possible interest rate hike despite Russia’s continued attacks on Ukraine and a COVID-related lockdown in Shenzhen, a China tech hub. At the time of writing, Bitcoin price is changing hands at $39,276.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price stabilized ahead of Fed announcement
Bitcoin and most other cryptocurrencies traded slightly higher on Tuesday as investors position themselves ahead of the U.S. Federal Reserve’s policy announcement Wednesday.
Analysts expect the Fed to raise interest rates by 25 basis points, which could tighten financial conditions that have supported the rally in speculative assets over the past year. The Fed is also expected to announce a plan to reduce its nearly $9 trillion balance sheet. Meanwhile, the fourth round of talks between Russian and Ukrainian diplomats continued on Monday, although there was no agreement on a ceasefire.
In crypto markets, bitcoin lagged behind altcoins yesterday, which could reflect a greater appetite for risk among traders. BTC was up about 2% over the past 24 hours, compared with a 5% gain in Ether (ETH) and a 20% rally in The Graph (GRT).
📰 As #crypto markets are rallying on a nice recovery day for many projects, we’ve released our metrics report covering the first half of March. $BTC and $USDT whale activity has been a big point of interest, as well as #inflation & #war. Read our latest! https://t.co/hjEVsd1NY7 pic.twitter.com/QmWyhV5LdD
— Santiment (@santimentfeed) March 15, 2022
After multiple setbacks from the $40,000 resistance zone, the leading cryptocurrency is recovering. Technical indicators are mostly neutral, and trading volume is low, suggesting a breakout or breakdown is likely this week. So far, buyers have maintained a solid support base of around $37,000, which could limit pullbacks over the short term. The significant loss of downside momentum on the weekly chart could encourage buying activity, especially if a breakout above $40,000 occurs.
However, on the monthly chart, momentum signals are negative, which means the upside could be limited toward the $46,700 resistance level.
Most major cryptos were in the green. Bitcoin trading remained light as investors continued to process the volatile macroeconomic climate.
The overall cryptocurrency market cap now stands at $1.749 trillion, and Bitcoin’s dominance rate is 42.6%.
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Read more:
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- Whale Season Has Started, And Whoever To Have A Large Chunk Of Bitcoin In 2010 Is Now A Very Rich Human