After the highly anticipated reports and forecasts from the December 15 Federal Reserve meeting, the entire crypto market began to rally. In laying out its roadmap for 2022, the Fed announced it will double the tapering of its monthly bond purchases.
The news that the Fed will use a shorter time to end bond purchases and raise interest rates sparked a rally, giving buyers the slight upper hand, as Bitcoin reclaimed highs of $49k.
Bitcoin Rallies Above $49k, Where’s the Next Stop?
Bitcoin has been stuck in the middle of a short-term box structure in the last few weeks, as buyers and sellers battle to get the upper hand. In the last week, Bitcoin has largely traded under $47k, with the asset falling as low as $45k on occasions.
However, Bitcoin began forming a slight bullish divergence on the CCI following the announcement. As a result, Bitcoin briefly reclaimed $49k, gaining 4% in the last 24 hours.
The 48 hours price chart of Bitcoin (BTC). Source: Tradingview
Although Bitcoin has fallen from its interday high of $49,473, investors are holding out hope that Bitcoin would rally above its next resistance level at $50k. Bitcoin now trades at $48,685 with a $922.4 billion market cap.
The charts support a continuous sideways price action in the short term. However, a breakout cannot be ruled out.
On The Flipside
- While the markets recover, some analysts believe that assets may face more correction in the short term before a major rally as a $755 million BTC option expires on Friday, December 17
Why You Should Care?
The Fed report shows how much influence regulators can have over the market. At this point, the market looks bullish, but how much momentum Bitcoin has remains to be seen.
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