23 February, 2024

Bitcoin Set to Breakout Today Amid Federal Reserve Interest Rate Hike Decision

8 months ago

27 Nov, 2023

Crypto Rover, a renowned cryptocurrency expert, recently released a video highlighting the potential for a significant Bitcoin breakout. This prediction is based on two key factors: the upcoming decision by the Federal Reserve regarding an interest rate hike and the extended period of low volatility observed in the cryptocurrency market. These combined elements indicate a substantial Break out is around the corner.

Crypto Rover highlighted several crucial charts in the crypto space that provide key insights into the market’s current state. First, attention is drawn to the Bitcoin CME Gap, a topic of discussion over the weekend. As predicted, the gap was filled on Tuesday, reinforcing that approximately 98% of CME gaps tend to close within three days. Traders who anticipated this move would have reaped roughly a 3.5% profit.

The video emphasized the formation of an exciting consolidation phase in Bitcoin’s price action, indicating an imminent breakout. This breakout is expected to coincide with the Federal Reserve’s interest rate hike decision.  

The analyst predicted that the Federal Reserve would likely pause interest rate hikes, creating anticipations of a bullish move for the market. With only a 4% chance of an additional 25 basis point hike, it is improbable that further rate hikes would occur due to lower-than-expected inflation. The focus is shifted to Jerome Paul’s comments during the FOMC meeting, as they would provide critical insights into future market movements.

He highlighted the formation of a falling wedge pattern on the daily timeframe, with substantial support levels identified around $23,000 to $24,000. This range would be an excellent opportunity for accumulating Bitcoin, even if the price were to dip further. 

Furthermore, an upward-sloping support line on the daily timeframe supports the notion of a breakout soon. The anticipation of heightened volatility is reinforced by historical data, with the Bollinger Bands signaling a significant increase in volatility.

Crypto Rover remains bullish on Bitcoin’s long-term prospects and mentions the formation of a large cup and handle pattern with a price target of $53,000. While acknowledging a significant resistance level of around $31,000 to $32,000, the overall trend indicates the potential for an upward move.

In conclusion, Crypto Rover advises viewers to stay vigilant during this period of apparent calm before a potential storm. Despite the current market sentiment, the video emphasizes the importance of paying attention to Bitcoin and the cryptocurrency market, especially considering that the next Bitcoin halving event is only 290 days away. This presents an opportune time for traders and investors to prepare for potential profits in the upcoming market cycle.