Bitcoin price recouped some of the losses recorded on Wednesday as the market digests the FOMC meeting minutes. Optimism that the worst of the crypto winter is over continues to support the crypto. Besides, investors expect that the Fed may ease on its interest rate hikes in coming months. Even so, uncertainty over the extent of the bank’s hawkish stance continues to curb the crypto’s gains.
Fundamentals
The knee-jerk reaction to the FOMC meeting minutes saw bitcoin price hit a one-week low. Even so, it remained range-bound amid the persistent uncertainties over the extent of the Fed’s hawkish tilt.
As stated in the minutes, most of the Fed officials aggreed on the need for further interest rate hikes as risks of high inflation remain a crucial factor. The Fed appears to be working towards reaching the endpoint of its rate increases while leaving the door open for higher hikes should inflation remain stubbornly high.
The subsequent optimism that the worst is over for the broader crypto market is set to continue supporting bitcoin price. Besides, amid the proposals to further regulate the industry, more crypto enthusiasts may shift their focus from altcoins to the more steady bitcoin. Even so, BTC/USD may remain subject to curbed gains as investors await further cues in the form of US economic data and remarks from Fed officials.
Bitcoin price outlook
Bitcoin price edged higher in early Thursday trade after dropping to a one-week low of 23,619.75 in the previous session. As at the time of writing, it was up by 0.95% at 24,418.68.
A week ago, the crypto rallied to a level last recorded on 15th August 2022 at 25,234.58. Even so, the bulls lacked enough momentum to break past that resistance zone. In fact, it has been range-bound since then. Notably, the Fed meeting minutes did not attract enough buyers to yield a rally past the aforementioned resistance level.
A look at its daily chart shows that bitcoin price has continued to trade above the 50 and 200-day EMAs. About a week ago, the medium-term 50-day EMA crossed the long-term 200-day EMA to the upside; forming a golden cross.
Based on both the fundamentals and technicals, I am of the opinion that BTC/USD will hold steady above 21,000 in the ensuing weeks. As such, the bulls still have an opportunity to hit a fresh year-to-date high as the year unfolds. In the meantime, the range between 23,417.03 and 25,234.58 remains worth watching.
