Pick Your Targets Bitcoin Analyst Believes Fed Will Favor Bulls

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Bitcoin (BTC) remained below $25,000 on June 15 after a sudden reaction to US economic policy changes hit three-month lows.

BTC/USD 1 hour candle chart on Bitstamp. Source: TradingViewHawkish Powell all bark, no bite

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it consolidated after previous days’ losses totaled more than 3%.

The U.S. Federal Reserve had granted an expected pause in interest rate hikes, its first since 2021, while keeping the hawkish mood. Fed Chairman Jerome Powell suggested that further hikes may be needed in the future to bring inflation under control.

As I noted earlier, almost everyone on the committee expects it to be appropriate to raise interest rates a little more by the end of the year, he said at a press conference, referring to the views of the Federal Open Market Committee (FOMC).

But at this meeting, considering how far and how fast we have gone, we felt it prudent to keep the target range stable to allow the committee to assess additional information and its implications for monetary policy.

Markets have thus placed more than 70% chance of a rise at the next FOMC meeting in July, according to data from CME Groups FedWatch Tool of the day.

Fed Target Rate Probability Chart. Source: CME Group

The mixed signals added further downward pressure on the already fragile crypto price performance.

However, not everyone was optimistic about the prospects. Analyzing the Fed event, Keith Alan, co-founder of monitoring resource Material Indicators, described Powell as all bark, no bite.

He telegraphed super hawkish to tame the markets but executed a super dovish break, he told Twitter followers.

Choose your targets.

An attached chart showed the major support areas for BTC/USD, these forming over the past six years since its previous all-time high of $20,000.

BTC/USD annotated chart. Source: Keith Alan/TwitterMore BTC price volatility to come

Continuing, the analysis argued that the situation for BTC price action could become even more interesting.

Related: Bitcoin supply in the US has fallen over 10% in the past year Glassnode

Spot, trade suite Decentrader noted, was approaching a zone of leveraged long liquidity.

Again: Volatility is coming, Maartunn, a contributor to on-chain analytics platform CryptoQuant, pointed out that day.

As bitcoin price moves sideways, open interest increased by $439 million. Unlike previous occasions, funding rates are trending down, near neutral. The long and short suggestions are (almost) in balance). Annotated chart of BTC/USD exchange data. Source: Maartunn/Twitter

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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