- Bitcoin records a significant pullback amid the takeover of First Republic Bank by JPMorgan.
- An analyst, however, believes that Bitcoin has several positive market indicators.
Bitcoin (BTC) has recorded a pullback from its recent $30K to hit $28K after falling by 2 percent in the last 24 hours. According to analysts, the cryptocurrency currently has a bearish signal and could go as low as $27,015.00.
However, there could be a turnaround which could see the asset going as high as $29,212.30 later today. The current mini pullback has been linked to the swift response to the First Republic Bank’s implosion as JPMorgan wins an auction to purchase its assets. According to Edward Moya, senior market analyst for foreign exchange Oanda, the response indicates that the banking sector was well prepared to address such a crisis.
It is looking like the U.S. banking system has a playbook to deal with the next banking crisis when it emerges, which is somewhat dampening the case for cryptos.
Crypto investors await the FOMC decision
Crypto investors are still hoping for a quick rebound as they await the outcome of the Federal Open Market Committee (FOMC) monetary policy meeting which begins today. Investors’ next move would be based on the decision to increase interest as well as the margin. The CME’s FedWatch tool believes that there is a huge chance of the interest rate increases by 25 basis points (bps) at over 94 percent. In this case, the target range may increase to between 5 percent and 5.25 percent.
According to analysts at Bitcoin mining equipment and hosting provider Blockware Solutions, Bitcoin has strong resistance between $30,000 and $31,000. With this, it is safe to expect that the asset could continue its downtrend or stage a rally depending on the decision of the FOMC policy.
After a breakout (BTC above ~$25,000), it’s important to pay attention to pullbacks to gauge the buying strength remaining. In this case, BTC flashed some pretty bullish signals, as buyers quickly stepped in at the 50-day [simple moving average].
While the asset is said to have recorded a 2.5 percent surge in April, regulations have been a major hindrance. It can be recalled that crypto exchange Coinbase petitioned the federal court to order the US Securities and Exchange Commission to be clear on whether the existing securities law applies to digital assets. The regulatory uncertainties in the country have forced some crypto firms to move to the East where governments are embracing new technologies.
Will Bitcoin Price Fall to $25K or Rebound to $31K?
According to co-founder and CEO of research platform The Tie Joshua Frank, Bitcoin has several positive market indicators including its market cap which is edging closer to June 2020 highs.
I think a lot of institutions are excited about Bitcoin. I think that the risk-off narrative is resonating right now. Just like it did in 2021.
However, the main challenge of the asset right now is liquidity which is also the reason for its outperformance.
Bitcoin is outperforming due to several reasons, including market consolidation, low trading volume, and banking uncertainty. In the short term, Bitcoin is more correlated to gold. However, the U.S. regulatory environment is unenthusiastic and negative towards crypto, contributing to low liquidity.
No spam, no lies, only insights. You can unsubscribe at any time.
The possibility of Bitcoin breaking its resistance level to hit $30k, or breaking its support level to hit $25k depends on the FOMC’s decision.
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Credit: Source link
.png)
