Here’s why a 0.75% Fed rate hike could be bullish for Bitcoin

• Traders expect a 0.75% hike 
• Federal Reserve is set to raise interest rates this week
• BTC Price at the time of writing – $20,432.40

Investors continue to be concerned that the Federal Reserve will have to continue with its aggressive monetary policy in order to curb inflation, which could result in a recession in the United States. 

As a result, the S&P 500 and the Nasdaq Composite index suffered their worst weekly performance since June.

Bitcoin is expected to fall by more than 9% this week and remains highly correlated with the S&P 500. Due to Goldman Sachs strategist Sharon Bell’s warning that aggressive rate hikes could result in a 26% fall in the S&P 500, if this correlation continues, it may cause additional pain for the cryptocurrency markets.

The FedWatch Tool indicates an 18% probability of a 100 basis point rate hike, despite the widespread expectation that the Fed will raise rates by 75 basis points at its next meeting on September 20 and 21. Short-term volatility could rise as a result of this uncertainty keeping traders on edge.

BTC Market Cap is up by 0.3% over the last 24 hours

Select cryptocurrencies may attract buyers if the Fed’s rate hike matches market expectations. Let’s look at the charts of five cryptocurrencies that have a bright future.

On September 16, BTC/USDT Bitcoin recovered from $19,320 and rallied above $20,000 on September 17, but the bulls are having trouble maintaining the higher levels.

This suggests that bears at higher elevations are active. The relative strength index (RSI) is in the negative zone and the 20-day exponential moving average (EMA) of $20,432 has slowly fallen, indicating that traders are selling near overhead resistance levels.

The BTC/Tether pair could fall to $18,510 if the price continues to fall and falls below $19,320.Customers are expected to vigorously defend this level.

The key level to keep an eye on on the upside is the $21,605 50-day simple moving average (SMA). The pair could rise to $25,211 if the bulls push it above it.

A new uptrend could begin if this resistance is broken and the price closes above it.

On the other hand, the recovery could reach the 50-SMA if the price rises from the current level and breaks above the 20-EMA.

The 61.8% Fibonacci retracement level of $21,470 could be the next stop if this level is cleared. However, this level may once again act as a barrier.

ALSO READ: Do Kwon faces $57-million lawsuit in Singapore

XRP/USDT

For many days, Ripple has been stuck in a range of $0.30 to $0.39.If the bulls are successful in overcoming the range’s resistance, the price could signal the beginning of a new uptrend.

Traders typically buy near the support and sell near the resistance in a range. The XRP/USDT pair may extend its consolidation for a few more days if the price moves sharply lower than the current level and breaks below the moving averages.

Albeit the moving midpoints are bungling one another, the RSI has bounced into a positive area, showing that the bulls have a slight edge. The pair could rise to $0.48 if buyers drive and maintain the price above $0.39.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Latest posts by Steve Anderrson (see all)