Bitcoin stays above $104k as Fed leaves interest rate unchanged – Crypto News – Crypto News
Connect with us
Bitcoin trades near $105K amid low volatility; analysts offer mixed outlooks Bitcoin trades near $105K amid low volatility; analysts offer mixed outlooks

Cryptocurrency

Bitcoin stays above $104k as Fed leaves interest rate unchanged – Crypto News

Published

1 month ago

on

Key takeaways

  • BTC continues to trade above the $104k level despite the ongoing Middle East crisis.
  • The U.S. Federal Reserve left interest rates unchanged but expects inflation to decline in the coming months.

Federal Reserve leaves interest rates unchanged

The major financial news of the week took place on Wednesday, with the FOMC confirming what many analysts already predicted. The U.S. Federal Reserve kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December.

Despite that, the apex bank stated that it expects inflation to remain elevated and sees lower economic growth ahead. Furthermore, the Fed expects to make two rate reductions later this year, as previously stated.

Bitcoin, the leading cryptocurrency by market cap, didn’t react to this news as the market had already priced it in. However, Bitcoin could rally higher in the near term as traders anticipate two rate cuts before the end of the year. At press time, the price of Bitcoin continues to trade around $104,700. 

BTC could rally towards $106k amid improved technicals

The market fundamentals continue to be poor, with the United States now increasingly involved in the ongoing conflict between Iran and Israel. However, technical indicators favour a short-term rally for the world’s leading cryptocurrency.

BTC surged above the 20-day exponential moving average ($105,851) on Monday. However, the bulls failed to sustain the higher level, and it dropped to the 50-day SMA on Tuesday.

The relative strength index (RSI) is approaching the midpoint, signalling a possible rally in the near term. If Bitcoin breaks above the 20-day EMA in the short term, it could rally higher towards a new all-time high at $112k.

However, if the bears remain in control and push the price below the 50-day SMA, the BTC/USDT pair could plunge to $100,000. Bulls will likely defend the $100k psychological level, as any drop below that could see Bitcoin test the $93k support level.
Share this article
Categories
Tags

Related Topics:
Continue Reading

Trending