Bitcoin Sees Price Surge Following Fed’s Interest Rate Decision
This week, Bitcoin (BTC) experienced a price hike after the Federal Reserve’s mixed interest rate decision on Wednesday. The cryptocurrency reached a high of $87,375, marking it’s peak as March 7 and a 13% increase from its lowest point this month.
The upward trend mirrored the recovery of other assets, including stocks and commodities. U.S. stocks saw a rise, with the Dow Jones and S&P 500 gaining over 1%. Gold hit a record high of $3,100, and copper surpassed the $10,000 mark.
Jerome Powell’s prediction that Donald Trump’s tariffs would cause temporary inflation likely fueled the rally. This scenario suggests more fed rate cuts than anticipated, causing the rate-sensitive 10-year bond yields to drop.
However, these gains were partially reversed, with Dow Jones futures falling by 200 points and Nasdaq 100 index futures dropping by 145 points.
Technical analysis hints at a potential Bitcoin price decline. The daily chart shows a rising wedge pattern, a bearish signal. This pattern involves two rising and converging trendlines,with a bearish breakout likely when they converge.
Other bearish patterns include a death cross, where the 50-day and 200-day Weighted Moving Averages crossed. A double-top pattern at $108,233 with a neckline at $89,000 also suggests a bearish continuation.
Bitcoin’s outlook is bearish, with an initial target of $76,750, its lowest level this month. A drop below this could lead to further declines, potentially to $74,070, its highest swing in march last year.
