Bitcoin Regain $29K Support, BTC Heading for Another Bull Run?

Pathik Bhattacharya
Pathik Bhattacharya
Published on May 04, 2023 04:48 PM

Although BTC was relatively flat following yesterday's FOMC meeting, it spiked in the following hours and reclaimed $29,000.

Bitcoin consolidates amid FOMC meeting
Source: Unsplash

Bitcoin regains the $29,000 mark again as of Thursday. The king crypto slid from the local support a bit due to Fed's interest rate hike news which was published later on Wednesday. 

As April came to a close, bitcoin began a rally that took it to $30,000. The bears, however, intercepted the move and drove the asset south. As a result, BTC dropped below $27,600 just a few days later.

Despite making some progress on Wednesday, the cryptocurrency was unable to decisively reclaim $28,000. More volatility was expected later in the day when the US Federal Reserve was scheduled to meet and possibly announce another interest rate hike. Let's see how the Bitcoin price will move from here.

Bitcoin Price Consolidates Amid Fed Rate Hike

The Fed raised interest rates for the tenth time in 14 months on Wednesday. The Fed's Federal Open Market Committee (FOMC) noted in a statement accompanying the rate rise that "tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation," and that it would keep an eye on inflation concerns.

In a press conference following the rate announcement, Fed Chair Jerome Powell stated that while prices had "moderated somewhat since the middle of last year... inflation pressures remain high and the process of returning inflation to 2% has a long way to go."

During the conference, Bitcoin's (BTC) price fell marginally to below $28,500 after the US Federal Reserve hiked interest rates by 25 basis points (bps), as predicted. The hike raises the federal funds rate to a target range of 5% to 5.25%.

Bitcoin Price Analysis: Daily Chart

Bitcoin (BTC) is currently trading at $29,180.68, with a 24-hour trading volume of $21,751,149,525. This is a 1.93% rise in the previous 24 hours and a 2.89% increase in the last 7 days. Bitcoin has a market worth of $565,055,135,316 and a circulating supply of 19 million BTC.

On the daily time frame, Bitcoin's price prediction is making a rising channel pattern which is looking bullish till now. The indications from this pattern are mostly bearish but due to the Fed rate hike, investors are pushing the price upwards. One of the most crucial things which are keeping BTC momentum upwards is 50 days and 100 days MA.

BTC is trading above the 50-day MA (at $28,532) and 100-day MA (at $25,715) which is a very good sign for long-term as well as for Mid-term investors. 

The RSI is moving at 54 and above the neutral line. This indicates that BTC is heading towards another bullish movement as Bulls are constantly hitting the price bar.

bitcoin price chart

Source: TradingView


In conclusion, the Bitcoin price is trading steadily between $28K and $29K. The Fed rate hike has boosted the price above $29K leading to another bullish candle. The technical indicators are all in favour of the "Buy" market. Overall, the Bitcoin market sentiment is optimistic.

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