Bitcoin surpassed the $70,000 threshold towards the end of March due to increased buying activity. This milestone carries significance as it marks the close of the first quarter of the year, following a period where the cryptocurrency remained at around $69,000.
Influence of Federal Reserve Chair’s Statements
Recent remarks made by Jerome Powell, the Federal Reserve Chair, had a notable impact on the market, leading to a nearly $1,000 rise in Bitcoin's value. Powell's comments in California, where he voiced a cautious yet optimistic stance on inflation and economic conditions, pointed towards a reluctance to rapidly reduce interest rates. This decision has implications for assets with high volatility, including cryptocurrencies.
Market expectations of a rate cut were shaped further, as the FedWatch tool from CME Group indicated a 61% likelihood of a 0.25% cut at the upcoming FOMC meeting, with June as the anticipated period for potential rate adjustments.
Technical Analysis and Insights from Analysts
Experts conducting technical analysis highlighted the significance of the $69,000 level for Bitcoin's trajectory. A close above this threshold could result in a new record closing price. Rekt Capital, a well-known trader and analyst, suggested that Bitcoin might experience continued fluctuations until there is a weekly close above $69,000, signaling a potential breakout. Any other movements would likely be seen as consolidation.
Moreover, positive sentiment was reinforced by promising on-chain data. Trader Kevin Svenson pointed to an encouraging trend indicated by the MACD oscillator, hinting that a crossover event on this indicator could align with a push beyond Bitcoin's previous all-time high near $74,000.
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