Bitcoin price responds to the Fed by rallying, a close at $41,250 essential for further upside
|- Bitcoin price action mixed off initial Federal Reserve interest rate decision, with selling pressure hammering BTC south before rallying near the end of the regular trading day.
- Traders and investors across all risk-on and risk-off asset classes assumed a 25 to 50 basis point increase was priced in.
- Bulls and bears await the initial surge of indecision to settle before deciding on a direction.
Bitcoin price action has thrown bulls and bears into a tailspin ever since the Fed announced its recent interest rate increase. However, at the time of publication, bulls are in control and look to initiate an extremely bullish entry signal that could set BTC on the path to new all-time highs.
Bitcoin price positioned for an expansive move if it can close at $41,250
Bitcoin price is attempting to pull off a daily close that could trigger a new bullish expansion phase. A close at or above $41 250 would confirm an Ideal Bullish Ichimoku Breakout on the daily chart - the first occurrence of that entry since July 30, 2021. Additionally, at $41,250, Bitcoin would close above the crucial 38.2% Fibonacci retracement.
While confirmation of a bullish close on the daily chart remains a few hours away, if Bitcoin price does trigger an Ideal Bullish Ichimoku Breakout, then the next resistance zone that BTC will likely tackle is the $47,000 value area where the 61.8% Fibonacci retracement and the 78.6% Fibonacci expansion levels exist.
Buyers should have an easier time pushing Bitcoin higher due to the extremely thin Ichimoku Cloud. Thin Ichimoku Clouds represent weakness and ease of movement.
Downside risks for Bitcoin price, however, remain. As a result, bulls should be wary of any weakness that would push BTC down to $37,750. If that occurs, then a bearish continuation move would likely begin with a return to the June 2021 and July 2021 lows near the $30,000 value area.
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