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Bitcoin Recovers Above $49k After the Fed Meeting, Where’s the Next Stop? -Breaking

by Mike Robinson

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Bitcoin Recovers Above $49k After the Fed Meeting, Where’s the Next Stop?

The entire cryptocurrency market rallied after the much-anticipated reports and forecasts of the December 15 Federal Reserve Meeting. The Fed revealed that it would double its tapering of monthly bond purchases in 2022 as part of its plan.

A rally was triggered by the news that the Fed would use less time to stop bond purchases and increase interest rates. This gave buyers a slight advantage, with highs reaching $49k.

Bitcoin Rallies Above $49k, Where’s the Next Stop?

In the past few weeks, Bitcoin has been trapped in a box structure that is short-term. This happens as sellers and buyers battle for the top. Bitcoin traded mainly below $47k in the past week. On occasion, the asset fell as low as $45k.

Following the announcement, Bitcoin started to form a minor bullish divergence with the CCI. Bitcoin gained 4% over the past 24 hours, and briefly recovered $49k.

Chart of Bitcoin’s price over the past 48 hours (BTC). Source: Tradingview

Even though Bitcoin fell from the interday peak of $49.473, investors remain hopeful that Bitcoin will rally to its next resistance level, at $50k. Bitcoin trades now at $48,685 and has a market capitalization of $922.4 billion.

Charts support an ongoing sideways movement in short-term price action. A breakout is not impossible.

Flipside

  • Analysts believe assets will face further correction while the market recovers. However, a 755 million BTC option that expires Friday, December 17, 2018, could lead to a significant rally.

What are the reasons to care?

This Fed report illustrates how powerful regulators have on the market. Although the market is bullish now, we still don’t know how much momentum Bitcoin will have.

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