Bitcoin Recovers Above $49k After the Fed Meeting, Where’s the Next Stop?

Bitcoin began forming a slight bullish divergence on the CCI following the announcement.

After the highly anticipated reports and forecasts from the December 15 Federal Reserve meeting, the entire crypto market began to rally. In laying out its roadmap for 2022, the Fed announced it will double the tapering of its monthly bond purchases.

The news that the Fed will use a shorter time to end bond purchases and raise interest rates sparked a rally, giving buyers the slight upper hand, as Bitcoin reclaimed highs of $49k.

Bitcoin Rallies Above $49k: Where’s the Next Stop?

Bitcoin has been stuck in the middle of a short-term box structure in the last few weeks, as buyers and sellers battle to get the upper hand. In the last week, Bitcoin has largely traded under $47k, with the asset falling as low as $45k on occasions. 

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However, Bitcoin began forming a slight bullish divergence on the CCI following the announcement. As a result, Bitcoin briefly reclaimed $49k, gaining 4% in the last 24 hours.

The 48 hours price chart of Bitcoin (BTC). Source: TradingView

Although Bitcoin has fallen from its interday high of $49,473, investors are holding out hope that Bitcoin will rally above its next resistance level at $50k. Bitcoin now trades at $48,685 with a $922.4 billion market cap.

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The charts support a continuous sideways price action in the short term. However, a breakout cannot be ruled out.

  • While the markets recover, some analysts believe that assets may face more correction in the short term before a major rally as a $755 million BTC option expires on Friday, December 17th.

Why You Should Care?

The Fed report shows how much influence regulators can have over the market. At this point, the market looks bullish but how much momentum Bitcoin has remains to be seen.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia