BlocksInform
Like bitcoin seemed to be completely short of breath after a 44% pump since January 1st, Many investors may have made profits in bricks and mortar, and in many altcorners. However, as the federal meeting is scheduled to take place on Wednesday, it may not be over yet.
Only a bearish market?
Since the beginning of the year, the cryptography market has experienced a very happy makeover. Bitcoin has blazed the trail and some of the most reputable altcoins have followed.
As the recovery continued, many analysts called it a downtrend in the market and many speculators were on the sidelines awaiting what they saw as the unavoidable retreat.
It seemed to be going on as bitcoin nearly marked $24,000 on Saturday before entering in a little tailspin and fall as much as Six percentage points on Sundays.
Price rallies into Wednesday’s FOMC meeting
However, on Monday, instead of the market continuing down, price has rallied somewhat and going into tomorrow’s FOMC meeting where the Fed’s Jerome Powell will potentially confirm the widely expected 0.25% interest rate rise, it is not really known how markets generally are going to react.
Since the market expects an increase of around 25 basis points, and recognizing that the Fed should take a maybe longer break this year and not add further increases, Markets could be expected to respond well.
Powell's angry jaw is on the line.
Of course, The Federal Reserve does not want to see markets torn apart, so President Jerome Powell will probably use his speech, Q&A follow-up to deliver the strongest possible message.
However, we must ask ourselves if this time the market is going to moan and come back to its kennel with its tail firmly between its legs, or if he senses a hint of weakness in the Fed's actions and begins to act knowing that the Fed will eventually pivot.
Strong price structure is needed
Bitcoin has returned into the upwards channel it has been following since mid-month. The huge resistance of $24,300 is not that far away, and a deduction of over $25,000 could open the door to $30,000.
Of course, if Bitcoin performs such a move without first coming back to confirm some of the bottoms, the inadequacy of the price structure would probably not allow it to stay at $30,000, and one would expect a much more profound correction to follow.
