Is Bitcoin (BTC) Finally Surging or Just Another False Dawn? - Analysis and Predictions
Wednesdays statement at the FOMC meeting by Fed Chairman Jerome Powell, that banks are perfectly capable of serving crypto customers, has led to a renewed surge from the king of the cryptos. Can the all-time high be reached, or is this just a spurt into a top that is already forming?
Fed chairman says banks can serve crypto customers
It may have just been a standard answer to a fairly straightforward question, but when asked in relation to Bitcoin, what he thought about speculation, an unregulated asset class, and hurting financial wellbeing, Jerome Powell replied that the Federal Reserve only looked at crypto in relation to the banks, and he stated:
Banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks
The typical anti-Bitcoin language that was commonly used during the four years of the Biden administration was used in the question, and the Fed chairman calmly replied, to all intents and purposes, that the Bitcoin boogeyman was no longer an issue.
In making this statement the Federal Reserve chairman was basically giving the green light and his agencys approval for banks to custody crypto on behalf of institutional and private clients.
Forget that there was no change announced in interest rates, and that the Federal Reserve remained committed to bringing inflation down to 2%, the fact that the Federal Reserve was no longer an enemy of crypto was the main takeaway here, and the Bitcoin price has increased on the news.
$BTC - rejection or continuation?
Source: TradingView
The 4-hour chart for $BTC shows the recent breakout. The price is at the last decent resistance, with probably only slight resistance at $107,000 to come, at least as far as it goes on this short time frame.
If the price is rejected here, a retest of the descending trendline is a possibility, which would possibly coincide with a descent to the horizontal support at $102,000. The uptrend appears to be inexorable, and a spike up to the next target at $120,000 still looks favourable.
Crucial 5-day close
Source: TradingView
The most telling chart is the 5-day. It could be said that its like looking at a weekly chart, but here you are getting an earlier indication of price movements.
It can be noted just how important a 5-day close would be for bullish continuation of the uptrend. The other factor to bear in mind is that the 5-day candle will close at the end of today (Thursday).
A close above $104,300, with a nice long candle wick underneath, could potentially lead to price growth to $120,000, and perhaps beyond.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
