Bitcoin’s current trading price is 29,464, indicating a slight 0.50% increase on Thursday.
However, the cryptocurrency faced a notable dip of nearly 3% in the last seven days in response to the Federal Reserve’s decision to raise the federal funds rate by 25 basis points.
Despite the economy experiencing moderate growth, the central bank’s move to tighten monetary policy has led to some downward pressure on Bitcoin’s price.
Investors and traders are closely monitoring the market’s reaction to this rate hike as it may influence the cryptocurrency’s future performance.
Federal Reserve Raises Federal Funds Rate by 25 Basis Points Despite Moderate Economic Growth
Despite moderate economic growth, the Federal Reserve recently increased the federal funds rate by 25 basis points.
This decision was expected and already priced in, and the next day, BTC saw some improvement.
The goal of the rate hike was to keep inflation under control, as per the latest report from the Federal Open Market Committee (FOMC).
Powell, the Fed chair, mentioned that a rate change in September is possible, but a pause is also a possibility.
The committee has not made any decisions on future meetings yet.
However, there could be some selling pressure on July 27 in the cryptocurrency market due to the European Central Bank (ECB) predicted to increase interest rates by another 25 basis points, even though the Eurozone is officially in a recession.
The Japan Central Bank is also debating whether to hike interest rates, which could lead to a sweltering Friday.
The recent 25 basis point increase in the federal funds rate by the Federal Reserve, despite moderate economic growth, had a mixed impact on Bitcoin’s price. While the decision was anticipated and already factored in, BTC saw some improvement the following day.
Bitcoin Price Prediction
Taking a technical look at Bitcoin , it has found support around the $28,850 level, evident from a series of Doji and spinning top candles closing above this level.
Currently, it is just below the significant resistance level at $29,500. This particular resistance is further reinforced by a downward trend line visible on the four-hour timeframe.
The recent candle’s close suggests the possibility of a minor correction in BTC price today.
However, it is worth noting that Bitcoin has already surpassed the 50-period exponential moving average (EMA), which was previously acting as resistance around $29,250.
Now, this level is acting as support, and a close above this stable support level could signal a continuation of the bullish trend.
Analyzing the leading technical indicators, such as the relative strength index (RSI) and moving average convergence divergence (MACD), both indicate that the chances of the bullish trend persisting remain strong, as they are holding in positive territory.
If BTC manages to breach the $29,500 level, the next technical resistance will likely be around $30,000, which also holds psychological significance.
Beyond this, the next resistance may be found around $30,350. On the contrary, if BTC falls below the $28,850 level, the next support area remains around $29,000.
A drop below this level may lead to a decline toward $28,850.
Overall, the technical analysis suggests a cautiously optimistic outlook for Bitcoin, with potential resistance and support levels to monitor closely in the current market conditions.
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