Buyers continue to put pressure. Then, the Fed’s interest rate decision looks favorable for crypto markets. The appearance of a golden cross should strengthen the current bitcoin (BTC) bull run. The right time for a long position?
A favorable interest rate for cryptos
Yesterday, the Fed decided to raise the interest rate by 25 points, which is in line with forecasts. Unexpectedly, this had a negative effect on the dollar, which fell by 1%. However, this is good news for crypto hodlers. Indeed, this allowed BTC to recover 6% in value. It is thus approaching the critical hurdle of $25,000. Breaking through this resistance should be easy for bitcoin (BTC) as a golden cross is approaching.
This is the cross between the 50 and 200 day moving average. This is a very relevant signal for a trader. Indeed, it indicates the beginning of a long-term bullish impulse. As a reminder, the last golden cross on the scale daily appeared on January 13, 2022. Since then, bitcoin (BTC) has lost 61% of its value until the end of the year. Therefore, one could consider a rise in BTC to $35,000, after this famous golden crossover. Let’s just wait for a slight correction before going long.
The right time to buy bitcoin (BTC)?
The golden cross is a very relevant buy or sell signal over the long term. Indeed, the moving average 200 indicates the underlying trend of the price over the long term. Then, the 50 moving average indicates the price momentum of bitcoin (BTC) in the short term. Thus, the cross between these two indicators shows the beginning of a strong uptrend. This is why we will favor a long position. However, BTC seems overbought, as the RSI is above 70. So, you will have to be careful and wait for a correction before buying bitcoin (BTC).
The $20,400 level seems to be ideal to enter a long position. This is half of the bull run since the start of the year. The stop loss could be placed at $19,500. The objective is placed around the $35,000 zone, because we are betting on a rise in bitcoin (BTC) of at least 60%.
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