Cloudy sky – Can Bitcoin (BTC) absorb last week’s losses in the next few days? The bulls look set to conquer levels well above $30,000. The US Federal Reserve (FED), however, could once again be the source of a significant red daily candlestick.
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Bitcoin at $30,000: the FED spoilsport
Bitcoin price goes up above $30,760 on Bitfinex today, May 17, 2022. Bitcoin is trading at $30,176 at the time of writing. It is currently recording a daily gain of 0.81%.
Is Bitcoin about to begin a bullish rally, as it shows signs of a sustained recapture of $30,000?
Trader Michaël van de Poppe believes that “as long as $30K holds”, a continuation of the current rise around $32,800 is “likely”.
He also points to the fact that the dollar is currently showing signs of weakness“which is beneficial” for bitcoin.
However, Bitcoin must once again deal with the consequences of the remarks made by the President of the United States Federal Reserve, Jerome Powell, on inflation in the coming days. The Fed will raise interest rates as long as necessary to see inflation come down, according to Powell:
“What we need to see is inflation coming down in a clear and convincing way and we will keep pushing until we see it”
Until the FED sees this net decline in inflation, the central bank must ” consider acting more aggressively “.
On a longer timescale, trader Rekt Capital took an interest in the monthly Kijun-sen which would be “a valuable point of reference for the macro trend of bitcoin.
Bitcoin lost the Kijun in early May 2022, having been using it as support for “almost a year now.” The Kijun seems to be acting now” like resistance “.
A successful test of the Kijun was in the past followed by a rise – circled in green in the graphic below.
A failed test of the Kijun or a transformation of it into resistance was, however, followed by a decrease – circled respectively in orange and red in the graphic above.
Should we continue, given these analyses, to watch the funds at $20,000 under the sea, although bitcoin seems to be ready for further increases above $30,000?
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