After a major break above the 1D 50 EMA, Bitcoin is eyeing the $28,000 level. The market is still bullish in the short term as major altcoins and cryptocurrencies bounce back from recent losses. Bitcoin is currently trading at $23,680.30, 3% higher than yesterday. The total market cap is at $1.09T, a 2.66% increase over the last day.
Markets Fall Ahead of FOMC Meeting
The market’s attention has been on the Federal Reserve’s monetary policy meeting, which has led to a drop in the prices of various cryptocurrencies. Bitcoin and Ethereum have both dropped from their key resistance and support levels.
Before the meeting, the market expected a rate hike, which caused Bitcoin to rise to around $22,000. However, on Wednesday, the Fed raised its interest rate by 0.75%, the highest increase since the 1980s.
According to Jerome Powell, the chairman of the Federal Reserve, large increases in the monetary policy rate could be ideal in the future. However, a period of an economic slowdown could help stabilize the market.
After the news broke out, major cryptocurrencies rallied, with Bitcoin trading above $23,100 and approaching a crucial 1D 50 EMA resistance. This move has led to many positive discussions in the market, suggesting that the market is starting to anticipate more upside.
Bitcoin Breaks One-day 50 EMA
Bitcoin is trading higher today, with good volume and a 10% increase. If the bulls can break above $24,300, we could see a bounce to the last month’s highs at around $28,000. This region has been having difficulty breaking since it had been trading in a range for more than a month.
If the bulls fail to break the resistance at $21,000, they would likely target the next major resistance at $20,700 to build on the momentum for a potential upside move. Failure to reach this level would invalidate the bull’s case, as bears would have more power.
The 4H time frame shows that BTC is in a good position to break above its minor resistance at $24,200 and reach its next target of $26,800.
The overall sentiment in the crypto market is improving after months of decline. The market is anticipating the upcoming merger between Ethereum and Bitcoin. As Bitcoin and other altcoins recover, more belief and relief will return to the market.
Sustained Buying Drives Polkadot (DOT) Higher by 15%
Another notable crypto is Polkadot, which continues to rise, and it has gained another 15% in just two days. This move is the second straight day of gains for crypto. Polkadot (DOT) is currently up by around 5.92%.
DOT experienced strong buying pressure after it reached its lows of around $6.2. It has since bounced back and is now trading around the $6.50 support line. The coin’s price has recovered steadily from its lows in the past couple of sessions. It has also generated a lot of investor interest. A break above the $8.00 level would trigger further gains.
The daily chart shows that the gasoline price is in a tight range between the rising trend line and the support level at $9.5. However, a break through the resistance at $8.05 would trigger strong buying pressure.
DOT continues to be volatile. The bulls are trying to push it higher while the bears keep an eye on the previous support line. The price of DOT/USD could shoot higher as it approaches the 50-day EMA and Exponential Moving Average. Also, the Relative Strength Index (RSI) has crossed the average line.
The hourly chart of DOT shows that the price is approaching the upper boundary of its range, which suggests that buying pressure is likely to be close to the lower zone. After retesting the lower boundary of the range, the price has reversed and increased.
Source: https://crypto.news/bitcoin-leads-cryptocurrencies-into-bullish-territory/