Originally published on: May 22, 2023
As Bitcoin holds steady below $27,000, speculations around potential rate hikes in the US are keeping the market on edge. With the possibility of two more rate hikes this year, Bitcoin analysts are counting down to what could be a period of significant volatility.
While BTC remains range-bound, there are concerns about a breakdown looming ahead. Key trend lines like the 200-week moving average are being closely watched for potential retests. Market commentators suggest that a sideways trend, although boring for traders, might just be a healthy consolidation phase.
Analyzing various scenarios, experts warn that moving averages could create a resistance/support flip area, which could spell trouble for bullish sentiment. The current support levels stand at $26,530 for the 100-day MA and $26,280 for the 200-week MA.
Trader Dann Crypto Trades offers an alternative perspective, pointing out that the prolonged trading range might lead to a capitulation scenario. Speculators could sell off, anticipating a breakdown that may never materialize.
Amidst all this, Michaël van de Poppe predicts “huge” volatility to hit the markets within a week, bringing potential drastic price movements for Bitcoin. While recent fake news about an explosion at the U.S. Pentagon briefly shook the markets, the focus remains on the Federal Reserve’s stance on interest rate hikes.
With talks of two more rate hikes this year, investors are cautious about the impact on risk assets. Market expectations of a June rate hike pause have diminished, leading to increased uncertainty in the market.
While this article does not offer investment advice, it serves as a guide for readers to conduct their own research and make informed decisions. Stay tuned for more insights and updates on the evolving market landscape.
