BITCOIN: THE FED JUST FLIPPED (Warning)!!! Bitcoin News Today & Ethereum Price Prediction!
Bitcoin is bouncing off crucial support after a major candle move, while Ethereum faces rejection from key resistance levels. Let’s dive into these developments and more.
Inflation Numbers and the Fed Meeting
The new CPI inflation rate came in at 3.3% year-over-year, triggering a quick pump in Bitcoin's price. The Federal Reserve kept interest rates unchanged but hinted at fewer rate cuts this year. This caused a market retracement , creating a "buy the rumor, sell the news" scenario.
Bitcoin ETF Outflows
A significant net outflow of around $200 million from spot Bitcoin ETFs on Tuesday contributed to selling pressure and a price drop.
Bitcoin Chart Analysis
Using Bollinger Bands on a four-day timeframe, Bitcoin is consolidating sideways in the short term within a larger bullish trend. The Bollinger Bands width indicator suggests an imminent massive volatile move, likely a 20-30% price change over one to two weeks.
On the three-day chart, a potential inverse head and shoulders pattern is forming, a bullish sign if confirmed by a breakout above $71.7k. A three-day candle close above $73-74k could push the price to $86-87k, marking a 20% move.
DXY Influence on Bitcoin
The DXY (US Dollar Index) is trending downwards, which is bullish for Bitcoin. Historically, a bearish DXY correlates with a bullish Bitcoin trend. The recent drop in the DXY, triggered by lower-than-expected inflation numbers, provided a short-term boost for Bitcoin.
Ethereum and Solana Analysis
Ethereum recently bounced off the 38.2% Fibonacci support level at around $3480 and faces resistance at $3650. Solana showed similar price action, bouncing off support around $145 and facing resistance at $160.
Trading Recommendations
My trading strategy remains unchanged. I added to my long position around $66-$67k as planned. This $250,000 Bitcoin long position has substantial realized and unrealized profits, with stop-losses set to protect gains.
