Bitcoin price action begins to show signs of instability as $39,000 provides near-term resistance.5621Total views40Total sharesListen to article3:23
Bitcoin (BTC) began to show fresh volatility as Wall Street trading began on March 15, ahead of a crucial interest rate announcement from the United States Federal Reserve.
Crunch time for the Fed on inflation
Data from Cointelegraph Markets Pro and TradingView highlighted a roughly $500 fall for BTC/USD after failing to reclaim $39,000 on the day.
An overnight push towards $40,000 had ended in disappointment for bulls, setting the scene for lackluster performance into the Fed decision.
With inflation running wild, analysts believed that more than a 0.25% rate hike was unlikely due to the need to maintain equilibrium in a market already bloated from liquidity injections and uncertain, thanks to the Russia-Ukraine war.
“The bottom line is we will proceed but we will proceed carefully as we learn more about the implications of the Ukraine war,” Fed Chair Jerome Powell told U.S. lawmakers earlier in March.
Bitcoin was characteristically volatile on the shortest timeframes but rangebound on longer ones at the time of writing, this behavior having characterized the largest cryptocurrency on many occasions throughout 2022.
Even March 14’s news that the European Union had rejected a legal amendment prohibiting offering services involving proof-of-work cryptocurrencies failed to change the status quo.
For popular analyst Matthew Hyland, a decisive break of the 2022 range high or low was now needed in order to entertain a new perspective.