Yesterday, the FOMC had its first meeting of the year and right after that the Federal Reserve claimed that there will be an interest rate hike of 25 bps and it is expected to continue. Even after the Fed raised the interest rate, the crypto market had a positive reaction as Bitcoin price steadily held its $23K level. Moreover, the flagship currency has now also gained its next crucial level of $23,500 area.
At the time of publication, Bitcoin is selling at $23,797 with a jump of 3.18% over the last 24hrs.
Bitcoin Price Above $24K ?
Meanwhile, crypto traders and investors are now looking forward to interest rate hike decisions to be made by the Bank of England and the European Central Bank. This interest rate hike is set to impact the US dollar and if the US dollar falls, the Crypto market is set to set its next foothold.
The Bank of England is expected to increase its interest rate by 50 bps to 4% which will mark its 10th interest rate hike. Meanwhile, the European Central Bank (ECB) is hopeful to raise its interest rate by 50 bps. It’s just not that, the ECB has further claimed to increase interest rate by another 50 bps in March and then in May.
On the other hand, as per the data, Bitcoin’s price action displayed in January has pushed the currency towards golden cross formation expected to happen in February. If this prediction turns out to be true, the King currency will experience a strong bullish cycle.
Usually, a golden cross occurs when the 50-day simple moving average intersects and moves above the 200-day simple moving average. However, what needs to be noted here is even though golden cross formation suggests a bullish cycle ahead, there are even instances that Bitcoin has failed to perform as predicted.
Source: https://coinpedia.org/bitcoin/bitcoin-price-hovers-near-24k-three-events-to-watch/