BTC/USD breaks bear trend
Bitcoin has today broken its bearish trend line that was in place since March, triggering some technical buying above it.
Cryptos and other zero-yielding assets have stormed back after the unexpected drop in US GDP increased speculation that the Fed will have to slow down the pace of the hikes and potentially go in reverse in early 2023.
Powell indicated at the FOMC press conference on Wednesday that the pace of interest rates hikes will slow, and that future hikes will depend on incoming data. “While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data,” Powell said.
Contrary to expectation of +0.5%, US second quarter GDP came in at an annual rate of -0.9%, which thus confirmed the US was in a recession after output had fallen by 1.6% in Q1, sending both gold and Bitcoin higher.
From here, it looks like BTC will test liquidity above the most recent high at $24,275, possibly reaching the
25K handle, before deciding on its next move. I wouldn't rule out a revisit of the 30K handle from here.
By Fawad Razaqzada on behalf of FOREX.com
Cryptos and other zero-yielding assets have stormed back after the unexpected drop in US GDP increased speculation that the Fed will have to slow down the pace of the hikes and potentially go in reverse in early 2023.
Powell indicated at the FOMC press conference on Wednesday that the pace of interest rates hikes will slow, and that future hikes will depend on incoming data. “While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data,” Powell said.
Contrary to expectation of +0.5%, US second quarter GDP came in at an annual rate of -0.9%, which thus confirmed the US was in a recession after output had fallen by 1.6% in Q1, sending both gold and Bitcoin higher.
From here, it looks like BTC will test liquidity above the most recent high at $24,275, possibly reaching the
25K handle, before deciding on its next move. I wouldn't rule out a revisit of the 30K handle from here.By Fawad Razaqzada on behalf of FOREX.com
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