Multiple factors indicate buying in the border crypto market. A much anticipated Fed rate increase filled the rally in risk-prone assets.
After the Federal Reserve raised the interest rates by 25bps to 4.5%-4.75% according to the market expectation. This led to gains in the risk-prone assets as the central bank dialed back the size of the hike for the second straight time. Bitcoin rose more than 2%, while ETH registered gains of nearly 4% post-decision.
BTC paused gains near $24K; What’s Next
In today’s session, the price opened flat but touched the high of $24,258. However, it surrenders the gains and hovers near the opening level. As of writing, BTC/USD is exchanging hands at $23,778, up 0.32% for the day. Further, the 24-hour trading volume of the pioneer cryptocurrency rose to $30,478,455.07 with more than 35% gains.
Technically speaking, BTC price has been in the short-term upside trend since the beginning of 2023. The asset continued the momentum in February as well, with an appreciation of 3% in two days.
However, the formation of a Doji candlestick along with a negative divergence on the Relative Strength Index (RSI) suggests a minor correction in the price toward the 9-day Exponential Moving Average (EMA) at $23,192. Any dip could be a buying opportunity as the market is still far from overheating.
Another indicator of buying momentum is the famous Puell Multiple, a key metric that dictates the state of the Bitcoin miners. The data shows the metric rallied after 191 days in the capitulation zone.
A higher reading means revenue for the miners that could translate into a reduction of selling pressure in BTC.
Any reading under ‘0.5’, is an accumulation signal. It indicates that Miner’s revenue is decreasing as compared to its cost. And, according to market terminology, the Bitcoin price is undervalued with the miner’s motive to hold their bitcoin reserve.
