Bitcoin (BTC) Back to $41,000, Here’s Why Retail Investors Should NOT Buy Yet
Just a day before the Federal Reserve plans to announce its first rate hike in four years, Bitcoin (BTC) makes a surprising move to the north. As of press time, Bitcoin is trading 5% up above $41,000. This is for the third time in three weeks that Bitcoin has made a move back above $40,000.
However, retail investors should still hold the guns and not fall for this renewed optimism. With today’s move, BTC makes a jump over its 20-day EMA and 50-day moving average. But make no mistake, the world’s largest crypto is still far away from its 200-day moving average (DMA) of $48,622. Only if Bitcoin crosses these levels, we can confirm some signs of the uptrend.
#bitcoin doing stuff pic.twitter.com/tEf25XtoQj
— Lark Davis (@TheCryptoLark) March 16, 2022
The current global macroeconomic situation looks to be quite fragile with the U.S. inflation numbers touching a four-decade high. On the other hand, the geopolitical uncertainty with the Russia-Ukraine war has added to the woes. A Twitter handle operated by Glassnode co-founders explains:
Liquidation sizes decrease as Bitcoin is squeezed into the $38-$42k price range (B). Long liquidations continue to dominate. The next big move is confirmed once we break the $36-$45k range (A).
Mike Novogratz: Don’t Expect Bitcoin to Rally ‘Aggressively’
Billionaire crypto investor and the founder of Galaxy Digital Mike Novogratz said that there are very few chances for Bitcoin to rally ‘aggressively’ knowing that the Fed is planning to rate interest rates and go ahead with strong quantitative tightening measures.
The Fed is reportedly planning for four minimum rate hikes this year which could go as high as 7-8 hikes in case the inflation doesn’t come under control quickly. Novogratz expects Bitcoin to stay in the $30,000 to $50,000 range this year. He further added:
“I don’t think Bitcoin can rally aggressively until we get a pause. Bitcoin is a narrative story, it’s bringing people into the community. It’s hard to bring in new people when their house is on fire.”
Novogratz also said that the New York State needs to get rid of BitLicense which is making it extremely difficult for other crypto firms to do business in the region.
- Expert Says Crypto ETFs Could Be ‘Death-Knell’ for Treasury Firms MSTR, MTPLF, BMNR, SBET
- Trump-Linked WLFI Passes 100% Buyback & Burn Proposal, Analyst Eyes Bullish Surge
- Crypto Market Liquidations Top $1 Billion Again With Ethereum Leading, Buy The Dip Opportunity Ahead
- Nasdaq-Listed AlphaTON Kicks Off Treasury Strategy, Buys $30M in Toncoin After $71M Raise
- XPL Token Soars 52% as Plasma Mainnet Launch Ignites Trading Frenzy
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
- Will Pi Coin Price Recover Before Month-End After Payochain Listing?
- Chainlink Price Prediction as Whales Buy 800K LINK — Can the Demand Zone Launch a Recovery?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
