Bitcoin pulled back to support at $27,000 on Wednesday after the Fed held interest rates steady but said there would be at least one more hike before the end of 2023.
- Fed day arrived and led to a negative performance in the crypto market as the central bank held interest rates steady in the range of 5.25%-5.5% but reiterated their projections that rates could close out 2023 in a range of 5.5%-5.75%, implying that there will be one more rate hike this year.
Stocks trended into the red following the announcement, with Wall Street analysts now debating how long it will be before the Fed announces a rate cut despite the recent uptick in inflation. At the closing bell, the S&P Dow, and Nasdaq all finished lower, down 0.94%, 0.22%, and 1.53%, respectively. Analysts at MN Trading noted that, prior to the interest rate announcement, Bitcoin “tested the old range high for the second time and has bounced strongly from it.”“With the test of the range high, all liquidity at the bottom has also been removed, increasing the likelihood of continuation to the upside,” they said. Our “expectation is that BTC will push through to $28k from here, where there will be a significant amount of liquidity.
Zooming in on the 4-hour BTC chart, the analysts highlighted that the resistance zone has been breached and is now serving as a strong support level.“As long as BTC remains above this green zone, we see no reason why it shouldn't move towards $28k,” they said.
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