Originally published on: April 04, 2024
Bitcoin made a remarkable comeback, reaching $67,658 with a 2% gain on April 4 following positive signals from the US Federal Reserve. The cryptocurrency hit local highs on Bitstamp as the Wall Street market opened.
In a day marked by a risk-asset rally, Bitcoin’s surge mirrored gains in US stock indexes, while gold saw a slight dip after reaching new all-time highs above $2,300.
Federal Reserve Chair Jerome Powell’s dovish tone on economic policy, hinting at potential interest rate cuts before the end of 2024, fueled optimism in the market. Powell’s remarks at the Stanford Business, Government, and Society Forum in Stanford, California, suggested that policy rate adjustments could be on the horizon.
Looking ahead to the Federal Open Market Committee (FOMC) meetings, the odds of a slight rate cut at the meeting in May or June stood at 61%, according to CME Group’s FedWatch Tool.
Despite slightly higher-than-expected initial US jobless claims, coming in at 221,000 versus 214,000 expected, the market continued to show upward momentum.
Bitcoin traders like Pierre highlighted the 200-period exponential moving average (EMA) providing support on four-hour timeframes, indicating a positive market structure. Meanwhile, trader Jelle pointed to bullish signals on the daily chart as a sign of potential upside continuation.
With Bitcoin’s relative strength index (RSI) crossing above the key 50 point at the daily close, traders are optimistic about future price movements. Jelle even mentioned a hidden bullish divergence on the daily chart, signaling potential further gains.
It’s important to note that this article does not offer investment advice. Readers should conduct their own research before making any financial decisions.
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