#Write2earn Bitcoin Price Dips to $63,500 Amid Fed Rate News
#Bitcoin #BTC #Marketanalysis $BTC The Bitcoin price fell to $63,500 as the Federal Reserve announced that interest rates would stay the same. However, future rate cuts are being signaled, and the stock market surged on this news. Are the signs there that Bitcoin is about to follow suit?
Market Noise vs. Bitcoin's Potential
Understanding Market Noise
The market is full of noise. Will the Fed signal future rate cuts (it did)? How much of the Mt. Gox Bitcoin will be sold? Will the US government sell more Silk Road Bitcoin? Are Bitcoin whales stacking (they are)? Is Bitcoin going to be rejected from the $70,000 level again?
Bitcoin's Bull Market Continues
Bitcoin's Resilience
Bitcoin’s price fluctuates – it goes up, down, and sideways. But what is Bitcoin really? For those who understand its potential, all this noise is just background. Bitcoin is in a bull market and is likely to keep rising until the bull trend is invalidated.
$BTC Correction Stabilizes
Short-Term Trends
Recently, Bitcoin’s price fell over the last few days. However, this small correction seems to have stabilized. Bitcoin didn't hit a lower low. Instead, it bounced back from the 0.382 Fibonacci level. Positive market sentiment and reset momentum indicators suggest Bitcoin might return to the bull flag's upper trend line.
Inverse Head and Shoulders Pattern
Long-Term View
Looking at the daily chart, we see the full bull flag and the confluence of Fibonacci levels with Bitcoin's price. If the price bounces from the 0.382 level, it’s a bullish sign. Bitcoin could then break out of the bull flag. However, if the price drops from its current level or the bull flag’s top, an inverse head and shoulders pattern might form, with the right shoulder at $60,000 or even $57,000.
Increased Liquidity and Bitcoin's Future
Bitcoin Thriving on Liquidity
Central banks, including the Federal Reserve, will need to cut rates to inject liquidity into the markets or risk economic collapse.