Bitcoin (BTC) headed for new nine-month highs after Wall Street opened on March 21 amid a crucial US Federal Reserve interest rate decision.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bitcoin Price Rises Despite Conservative Fed View
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $28,500 on Bitstamp.
The latest BTC price action, the latest in a string of multi-month highs, precedes what is expected to be a volatile day for the markets.
The Fed is due to announce on March 22 how much, if any, it will raise its base rate, with a pause in the rate hike cycle seen as a boon for risky assets.
“Very interested to see tomorrow’s results,” wrote Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, in part of a Twitter update.
“The potential swing to the highs, closing the CME gap, catching everyone and creating bearish divergences is an ideal concept. Key Zone $28,700.”
Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter
Nonetheless, Bitcoin produced interesting moves on the day, with dollar gains paired with the volatility of the overall crypto market cap dominance.
“Altcoins are bleeding as Bitcoin still consolidates around the highs. Not the signs you want to see,” Van de Poppe previously warned.
“Money rotates from altcoins to bitcoin amid concerns for tomorrow’s FOMC meeting. I would also remain relatively calm with the positions. Obvious opportunities will arise.”
The subsequent crash after Wall Street opened was described by popular trader Crypto Tony as an “interesting dump on BTC dominance causing altcoins to surge.”
Bitcoin crypto market cap dominance 1 hour candlestick chart. Source: TradingView
The mixed signals reflected market vision for the Federal Open Market Committee (FOMC) meeting. According to CME Group’s FedWatch tool, the majority now predicted a 25 basis point rate hike, as opposed to the previously favored pause.
Fed target rate probability chart. Source: CME Group
“All classes” buy BTC
Meanwhile, analyzing trader behavior, on-chain monitoring resource Material Indicators revealed blanket buying on the largest global exchange, Binance.
Related: Will the Fed Stop Rate Hikes? 5 things to know in Bitcoin this week
A snapshot of the BTC/USD order book showed increasing engagement ahead of FOMC on both large and small volumes.
$28,500 and $29,000 formed the strongest resistance levels at the time of writing, while the next significant support at $27,000 was further from the spot price.
#FireCharts shows all classes buying this #BTC movement. pic.twitter.com/NjrodLhmCD
— Material Indicators (@MI_Algos) March 21, 2023
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