BTC Bulls to Retarget $31,500 on Less Hawkish Fed Commentary
BTC found early support this morning. After a bullish Monday, easing Fed Fear and optimistic price forecasts continued to deliver early price support.
Bitcoin (BTC) Price Action
This morning, BTC was up 0.11% to $30,500. A mixed start to the day saw BTC rise to an early high of $30,552 before falling to a low of $30,412.
Daily Chart
The Daily Chart showed a BTC/USD break through the lower level of the $30,750 – $31,250 resistance band before falling back to sub-$30,750.
However, BTC/USD remained above the 50-day ($28,979) and 200-day ($26,388) EMAs, signaling bullish momentum over the near and long term. Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected bullish momentum.
Looking at the 14-Daily RSI, the 59.28 reading signaled a bullish outlook and aligned with the 50-day and 200-day EMAs, supporting a run at the lower and upper levels of the $30,750 – $31,250 resistance band.
4-Hourly Chart
Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $31,000 psychological level. BTC/USD sits above the 50-day ($30,445) and 200-day ($29,386) EMAs, sending bullish near and longer-term signals.
Significantly, the 50-day EMA pulled away from the 200-day EMA, signaling a move through the lower level of the $30,750 – $31,250 resistance band to target $31,250.
However, a fall through the 50-day EMA ($30,445) would bring the 200-day EMA ($29,386) into view.
The 14-4H RSI reading of 51.84 indicates a moderately bullish stance and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum and a run at the $30,750 – $31,250 resistance band.
Financial Institutions Delivered a Bullish Start to the Week
It was a relatively busy Monday session. While there were no US economic indicators or crypto events to provide direction, Fed commentary provided support.
Several FOMC members signaled the near-term end to the Fed monetary policy tightening cycle.
Banking giant Standard Chartered Bank delivered BTC price projections, predicting a BTC return to $50,00o in 2023 and the possibility of hitting $120,000 in 2024. The bank attributed the bullish forecast to the likelihood of Bitcoin miners hoarding BTC, which would reduce the supply.
The Day Ahead
It is a quiet Tuesday session. There are no US economic indicators to consider today. However, Fed chatter will continue to draw interest in the afternoon session, with more dovish commentary likely to deliver further gains.
