BTC price struggles below $39K ahead of expected interest rate hike by the Fed

Published at: March 14, 2022

The blockchain community got a bit of good news on March 14 after regulators in the European Parliament's Committee on Economic and Monetary Affairs rejected a ban on proof-of-work (PoW) based cryptocurrencies like Bitcoin (BTC) that would have had significant ramifications for the crypto industry. 

Data from Cointelegraph Markets Pro and TradingView shows that despite the positive development, Bitcoin continues to trade sideways near the $39,000 level amid geopolitical uncertainty and the possibility of a Federal Reserve interest rate hike later this week. CME Fed Fund futures prices suggest that traders are pricing in a March 16 rate hike with 100% confidence. 

Here’s what several analysts are saying about the outlook for Bitcoin ahead of any possible interest rate hike and what levels to keep an eye on when tracking the bull and bear market scenarios.

Price action has been “insanely boring”

The price action in the cryptocurrency market on Monday has been “insanely boring,” according to markets analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart outlining one possible path BTC could follow in the coming days:

Referencing the chart, van de Poppe said:

“Fundamentals -> good steps. But, liquidity sides still the same. Sub $37,000 and we accelerate. Above $45,000 and I think we accelerate for Bitcoin.”

Ongoing consolidation pattern

Overall, Bitcoin appears to be continuing the consolidation pattern it has been following for the past two months as highlighted in the following chart posted by on-chain cryptocurrency analyst Will Clemente.

As for what comes next with this pattern, options trader and pseudonymous Twitter user John Wick posted the following chart noting that there is “a squeeze forming on the daily chart.” He further explained:

“Violent moves come out of the squeeze just as we see the last time this formed.

Related: Law Decoded: Joe Biden’s executive order is finally upon us, and it doesn’t look too dreadful, March 7–14.

Looking to flip $38,000 into support

Analysis from a higher timeframe perspective was offered by crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart pointing to the ongoing attempt to flip $38,000 into support for Bitcoin:

“New BTC Weekly Close shows that the Higher Low (green) is still intact and price is still in the process of trying to properly flip the $38,000 area into support (red),” Rekt Capital explained.

A final bit of reassurance for Bitcoin bulls was noted by analyst and pseudonymous Twitter user TAnalyst, who posted the following chart showing that BTC is trading near a major support level:

The analyst explanined:

“BTC - The 9-year support, never broken. No need to talk. Chart is self-explanatory." 

The overall cryptocurrency market now stands at $1.718 trillion and Bitcoin’s dominance rate is 42.8%, according to CoinMarketCap.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Bitcoin
Regulation
Bitcoin Price
Markets
Market Update
Cryptocurrencies
Btc Markets
Federal Reserve
Interest Rates
Related Posts
Bitcoin price is ‘likely starting the next push up’ if $42K holds as support
The cryptocurrency market remains in a state of flux as investors are once again focused on what steps the U.S. Federal Reserve might take to combat rising inflation and markets wobble as the situation in Ukraine remains tense. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has hovered around the $44,000 support level and traders are hopeful that an inverse head and shoulders chart pattern will lead to a sustained bullish breakout. Here’s a survey of what several analysts in the market are keeping an eye on moving forward as global issues from inflation …
Bitcoin / Feb. 17, 2022
Boom or bust? Is there a way for Bitcoin price to hit $100K in 2022?
The internet is filled with Bitcoin (BTC) price forecasts. For example, some analysts believe that the flagship crypto will hit $1 million per coin in the next 10 years, while others think BTC price will eventually drop to zero. Without dwelling on predictions that are five or more years ahead of us, let us focus on what Bitcoin could do, say, in the next six months? Again, the forecasts vary drastically. For instance, Antoni Trenchev, the founder of Nexo Finance, sees Bitcoin price hitting $100,000 by mid-2022. On the other end of the spectrum is Sussex University professor Carol Alexander, …
Bitcoin / Jan. 25, 2022
Bitcoin 'Doji' points to bullish reversal scenario as BTC holds $36K support
It is not too late for Bitcoin (BTC) to reclaim its bullish bias as it halfway paints an indecisive 'Doji' candle on the weekly chart. In detail, Bitcoin's price correction this week to below $33,000 had it form a lower wick, suggesting that bulls bought the dip. A sharp retracement ensued and took BTC price to as high as $38,960 on Jan. 27. However, the bulls failed to hold the said week-to-date top for too long, resulting in another wick, but also pointing to the upside. BTC price has since corrected to near its weekly opening rate of $36,200. In …
Bitcoin / Jan. 28, 2022
Bitcoin price spike to $39K leads traders to say ‘the panic is over for a few days’
Global financial markets and crypto markets were pummeled over the past 24-hours as the invasion of Ukraine by Russian forces sent investors scrambling and sell-offs took place across most asset classes. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) hit a low of $34,333 in the early trading hours on Feb. 24, shortly after the Ukraine incursion began, and has since climbed its way back to $38,500 after an unexpected short-squeeze may have rapped bearish investors on the knuckles. Here’s a look at what several analysts are saying about BTC price and how the …
Bitcoin / Feb. 24, 2022
Analysts say bulls will aim for $48K now that Bitcoin’s ‘accumulation phase’ has begun
Investor sentiment across the cryptocurrency ecosystem has seen a significant shift in the positive direction over the past week, despite events in the wider world. Currently, Bitcoin (BTC) is back above $43,500 and many altcoins are also witnessing double-digit gains. The ongoing conflict in Ukraine and recent actions taken by governments to limit access to banking services may have helped to shine a light on the value of holding cryptocurrencies which offer some protection against uncontrollable events and what some might perceive as government overreach. Data from Cointelegraph Markets Pro and TradingView shows that the price of BTC has oscillated …
Bitcoin / March 2, 2022