Bitcoin bulls pre-positioned for BTC price to break $50,000
|- Bitcoin price breaks out of the black descending trend line.
- BTC price is squeezed against $48,760, with a bullish breakout set to unfold.
- As the RSI is still below 50, there is plenty of room for the uptrend to continue without any large profit-taking.
Bitcoin (BTC) price sees investors pre-empting the FED decision later this evening, as bulls lift BTC price above an intermediary black descending trend line to face $48,760 historical resistance, and exert a bullish squeeze. Following the breakout, expect bulls to push on, although the US central bank decision later this evening could provide either tailwinds or headwinds. Expect no substantial movements for now, but with the bullish uptick and Relative Strength Index (RSI) still below 50, there is room for more upside towards a target at $53,350.
Bitcoin prepares to make a comeback
Bitcoin price sees bulls attacking the black intermediary descending trend line and the historical level at $48,760. With the black ascending trend line broken more investors are likely to come in and pre-position themselves for a breakout above $50,000. A subdued RSI suggests there is more room to go.
BTC price could see some headwinds from the FED rate decision later today, which may provide a catalyst for a pivot to either a risk-on or risk-off market environment. In the case of risk-on, tailwinds will emerge in both stocks and cryptocurrencies, lending BTC price the wings to reach $53,350 or even possibly $55,619, and a possible 15% in gains.
BTC/USD daily chart
Should Powell and the FED come out more hawkish, however, expect investors to flee into cash, pulling the plug on riskier assets like equities and cryptocurrencies. Bitcoin price would be expected to tank on the news, declining towards $44,088 or $43,030 where it might then bounce. Any further downside could be limited, however, given by then RSI would be far into oversold territory.
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