Bitcoin Price Holds $24K As Traders Watch These Three Key Events
Bitcoin price continued its upward trajectory after the U.S. Federal Reserve slows the rate hike to 25 bps and Chair Jerome Powell agrees to cooling inflation, but still early to pivot. The BTC price jumps 5% after the Fed rate hike decision. However, traders are watching these three key events to decide whether to buy or sell Bitcoin at current levels.
Bitcoin Price Awaits a Massive Rally
After a 40% rally in January, Bitcoin price looks to turn fully bullish as the U.S. Fed decided on a small 25 bps rate hike. The Fed was bound to slow rate hikes amid cooling inflation, strong jobs data, and GDP growth in the fourth quarter. Moreover, high interest rates risk a recession and U.S. debt continues to rise.
Traders are awaiting interest rate hike decisions by the Bank of England and the European Central Bank scheduled today. The rate hike decisions will impact the US dollar, a weak dollar will increase crypto prices. The US Dollar Index (DXY) is currently recovering from below the 101 level, ahead of the rate hike decisions.
The Bank of England increases interest rates by 50 bps to 4%, a 10th consecutive rate increase. It will push borrowing costs to the highest since 2008. Recently, the IMF warned that the UK will be the only major economy to go into recession this year.
Meanwhile, the European Central Bank is also expected to raise interest rates by 50 bps. The ECB plans to go with another 50 bps in March, followed by a final hike in May. ECB President Christine Lagarde plans to stay course to return inflation to 2%.
Traders Eyes “Golden Cross” in Bitcoin Price
Bitcoin rally in January is driving the formation of a “golden cross” this month, which indicates a strong bullish market.
Bitcoin price chart in daily timeframe signals a “golden cross” formation impending this month. The golden cross will occur when the 50-day simple moving average (blue) crosses above the 200-day SMA (red), producing a cross on the price chart. While this generally indicates a bullish market, not all Bitcoin price rallies have come after golden crosses historically.
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