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The cryptocurrency market is back in the green after several days of doldrums, which Bitcoin (BTC) price used to consolidate the gains and collect more liquidity. Investors also took the opportunity to accumulate more BTC with the dips to the support at $33,000 ahead of the next bull run.
Bitcoin Price Wakes Up Post FOMC
It appears that the decision by the United States Federal Reserve to leave interest rates unchanged between 5.25% and 5.5% on Wednesday affirmed the positive outlook in the market since October.
Jerome Powell, the Fed chairman reiterated that the bank is “strongly committed” to bringing down inflation.
“Recent indicators suggest that economic activity has been expanding at a strong pace – well above earlier expectations,” Powell said during the meeting.
The majority of the committee members believe that there is a need for another rate hike before the year ends while keeping a tight monetary policy in the foreseeable future.
Bitcoin price resumed the uptrend following the FOMC meeting, rallying above $35,000 to trade at a new yearly high. Up 3.3% in the last 24 hours, BTC is trading at $35,383.
Altcoins like Ethereum, Cardano, and Solana followed suit, bringing to life their uptrends to trade 2.1%, 7.8%, and 13.2%, respectively higher on the day.
Is The Bear Market Behind Us?
Bitcoin upholds support above $35,000 allowing for consolidation to take place ahead of another macro uptrend. According to trader and analyst, Rekt Capital, as long as Bitcoin stays above support at $34,800, the next target lies between $36,500 and $37,000.
#Bitcoin breaks out and reaches a new yearly high.
Not a massive breakout, but as long as we stay above $34.8K, the next target is $36.5-37K.#Altcoins to follow after. pic.twitter.com/3aCKwvoGXq
— Michaël van de Poppe (@CryptoMichNL) November 1, 2023
He is of the opinion that “the bear market is behind us” and predicts that projects in the decentralized finance (DeFi) sector could soon begin to rally.
#Bitcoin still consolidating above $35,000.
Slowly, but surely, more #DeFi projects start to rally.
I wouldn’t be surprised if we get a renewed DeFi summer in 2024.
The bear market is behind us.
— Michaël van de Poppe (@CryptoMichNL) November 2, 2023
The Relative Strength Index (RSI) at 72 although beginning to be overbought could stretch higher toward the 100 mark, as it is the norm with bullish markets. In other words, as long as it sustains the uptrend, BTC price would be inclined to keep the rally intact.
Traders should be aware of an incoming bullish cross which would reinforce the bulls’ growing influence. This bullish pattern occurs when a short-term moving average flips above a long-term moving average. For instance, the 100-week EMA (blue) reaching out to cross above the 200-day EMA on the weekly chart.
Can Bitcoin Price Hit $56k By Year-End?
Bitcoin’s rally started in October and now it has spilled into November. Investors believe that this recovery will continue unless an outside force emerges — more like Sir Isaac Newton’s third law of motion.
In their latest note to customers, researchers at crypto services platform Matrixport implied that Bitcoin price has the potential to keep moving upward over the next two months in what they described as the “Santa Claus Rally.”
“As bitcoin tends to reach its peak by December 18th, we could call the six to seven weeks from early November to mid-December Bitcoin’s Santa Claus Rally,” Matrixport report stated.
The remarkable rally to above $35,000 can majorly be attributed to optimism surrounding the potential greenlighting of spot ETF proposals by the SEC. Matrixport believes Bitcoin can rally by more than 65% before December 31 which means it could end the year upwards of $65,000.
“Based on these statistics, bitcoin continues to offer upside potential, and a +65% year-end rally would lift prices back to $56,000,” the researchers added in the note.
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