Bitcoin eyes $28,000 after a major breakout from the 1D 50 EMA resistance with a good volume. The Crypto market looks bullish on the low timeframe as major cryptocurrencies and altcoins gain relief bounces.
Market Dumps Ahead Of FOMC Meeting
The major buzz around the financial market over the past few days was focused on the FOMC. This has led to major cryptocurrencies dropping from key supports and resistance, with the likes of Bitcoin trading at around $20,700 and Ethereum going down to $1,376.
Related Reading: Bitcoin Slips To 1-Week Low Ahead Of Fed Hike Rate Decision
Before the FOMC meeting, rumors of a hike in rate led to the crypto market bouncing, with BTC rising to $22,000.
On Wednesday, the Federal Open Market Committee (FOMC) raised its interest by 0.75% marking the highest rate increase since the 1980s. The Federal Reserve Chairman Jerome Powell stated, “unusually large increase could be ideal in future meetings and a period of economic slowdown will be vital to bring back price stability.”
Major cryptocurrencies in the market after the news have seen a good response, with BTC trading above $23,100 and approaching a crucial 1D 50 EMA resistance. Leading to many discussions in the market applauding the rally as it could signal more upsides and relieve bounces for altcoins.
Related Reading: Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump
“If 75bps gave us this pump, 100bps would send us to ATH surely,” @Livercoin
“Ideal ingredients for a Summer Relief Rally are there:
Powell becoming dovish on policy and more data-dependent.
$ETH merge is coming up in September.
Serious impact on 3AC, Celsius, and more already priced in.
I’m seeing $ETH to $2,400 and $BTC to $28,000-30,000.” @CryptoMichNL
Bitcoin Breaks One-day 50 EMA With Good Volume
Bitcoin rallies with good volume, surging to a 10% increase earlier today, and if bulls can breakout above $24,300, then we would be up for a relief bounce up to $28,000.
This is a region that BTC has had a tough time breaking after trading for more than a month in a range.
BTC 1D 50 EMA Breakout | Source: Tradingview.com
If BTC fails to break this major resistance, bulls would likely revisit the $21,000 – $20,700 to build more momentum for a potential breakout. If BTC fails and falls below $20,000, this will be invalidated as bears will have more power over the bulls.
The State Of Bitcoin On The 4H Chart
BTC on the 4H timeframe looks good as it needs to break above a minor resistance of $24,200 to soar higher to the region of $26,800 – $28,000.
BTC On The 4H Chart Approaches $24200 Resistance | Source: Tradingview.com
The overall market sentiment is improving after months of downtrend and loss of interest in the crypto market. The crypto market is in high expectation of the Ethereum merge that will come up soon.
As BTC recovers with other major altcoins, more relief and belief would return to the market.