Bitcoin (BTC), which began showing new volatility on Wall Street trading in March 15 ahead of an important interest rate announcement by the United States Federal Reserve, began to show signs of instability as a result.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
The Fed is in a crunch time regarding inflation
Data from TradingView and Cointelegraph Markets Pro showed a $500 drop in BTC/USD, after which $39,000 was not reclaimed.
Bulls’ overnight push for $40,000 was a disappointment, and the Fed’s decision was based on a disappointing performance.
Analysts believe that a rate increase of more than 0.25% is unlikely given the volatility of inflation. This was due to the need for equilibrium in a market already overloaded by liquidity injections and uncertain because the Russia-Ukraine conflict.
Jerome Powell, Fed Chair, stated that “the bottom line is we will continue but we will proceed with caution as we learn more concerning the implications of Ukraine war.” He spoke to U.S. lawmakers in March.
Bitcoin was volatile in the shortest timeframes, but stable over longer timeframes at the time of writing. This behavior has been the hallmark of the largest cryptocurrency many times throughout 2022.
Even the news on March 14 that the European Union rejected a legal amendment banning services involving proof of work cryptocurrencies did not change the status quo.
Matthew Hyland, the popular analyst, felt that a break in the 2022 range high or lower was necessary to give new perspective.
Only #Bitcoin will make a real move if it breaks $46k, or falls below $33k. All else is noise! pic.twitter.com/ujmVzYQq1v
Matthew Hyland (@MatthewHyland_), March 15, 2022
He noted that “it is interesting that we have spent more money closer to $46K” than $33K in further comments.
“Could it be that demand is increasing and selling pressure is decreasing?” It won’t stay in that range for ever, however.
The Fed announcement was scheduled for 2 pm Eastern Time on March 16th, followed by Powell’s press conference a half an hour later.
Comparing 2018 bear market sentiment
A longer-term perspective was taken on the topic of Bitcoin, its ranges, and it was hoped to convince timid market participants that things weren’t so bad in March 15.
Related: Bitcoin has 3 strikes but investors remain calm despite the price drop
Popular Twitter account Cryptobirb analyzed the sentiment in crypto and concluded that BTC/USD has still managed to post higher highs than lows since 2021.
It is interesting to see how flat $BTC has performed for more than a year, while traders’ sentiment compares with the despairing depths of 2018. The more #Bitcoin moved sideways, and the more depressed traders became. Yet, the market’s made higher high and low pic.twitter.com/0sHLu8nTuB
— CRYPTOBTCIRB March 15, 2022 (@crypto_birb
Cointelegraph reported that Bitcoin was traded at $3,600 two years ago, more than tenfold lower than it is today.
Eileen Wilson –Technology and Energy
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