Bitcoin (BTC) recorded a surge after a streak of downward momentum courtesy of the US Fed interest rate decision announcement. The benchmark cryptocurrency tapped the $40,000 top for the first time since April 28.
As expected, the broader market reacted similarly to the news, as the total market cap added 5.7% to its value yesterday.
The US Federal Reserve raised its benchmark rate by 0.50%, its highest single increase since 2000, as it worked towards curbing worsening inflation. That said, the central bank noted that it could raise rates by another 0.50% in its next meeting, dashing hopes of a more aggressive outlook.
US Federal Reserve Chairman Jerome Powell noted at the FOMC meeting that he sees the surging inflation and the negative effect it had on the country. He asserted that his organization was well-equipped with the necessary tools to combat the lingering economic crisis. Excerpts from the minutes read:
“Inflation is much too high. We understand the hardship it is causing, and we are moving expeditiously to bring it back down. We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses.”
Key Bitcoin Levels to Watch — May 5
Just as projected in my last analysis, Bitcoin has responded favorably to the US Fed rate announcement, as the benchmark cryptocurrency bounced from the $37,700 area to the $40,000 top, a 5.8% jump. However, the cryptocurrency lacked the coordination to take the $40,000 barrier, prompting a correction to the mid-$39,000 area today.
That said, BTC holds its place around the 4-hour 100 EMA, which could prop it up for a push above the $40,000 ceiling in the coming days. Regardless, the primary cryptocurrency needs a comfortable close above the $41,000 pivot ceiling to put the still-present bearish bias to rest. Unless we record this move above the pivot area in the coming days, the window for a bearish continuation remains present.
Meanwhile, my resistance levels are at $40,000, $41,000, and $42,000, and my key support levels are at $39,000, $38,000, and $37,000.
Total Market Capitalization: $1.79 trillion
Bitcoin Market Capitalization: $752.1 billion
Bitcoin Dominance: 41.9%
Market Rank: #1
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