Bitcoin (BTC/USD) Recovers Slightly After the FOMC, But Is the Cryptocurrency Bullish?

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  • Bitcoin is stable after the FOMC statement

  • The cryptocurrency remains tied to broader crypto issues

  • BTC needs to overcome USD 16,500 to turn bullish

Bitcoin (BTC/USD) rose slightly on Thursday following the statement from the US Federal Reserve. The cryptocurrency was held at the $16,500 level after a soft stance from the officials. BTC was already anticipating the comments as investors were optimistic that the Fed would cool off with rate hikes.

Friday’s Fed statement just confirmed what the market was expecting. Officials indicated they would slow the pace of rate hikes. The Fed cited uncertain slowdowns related to monetary actions on inflation and economic health. The monetary committee settled for the fourth increase of 75 basis points anyway. While this was not a signal that interest rates would remain low, it did ensure a softer landing on the markets.

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Despite the somewhat positive signal from the Fed, Bitcoin’s price must be seen within the wider risks of contagion. In particular, the crisis of confidence created by the collapsed FTX stock market may last longer. In combination with a possible recession, we could wait a little longer for a sustained increase. The slow pace of gains recorded by cryptocurrencies after a mild statement confirms a lackluster market. For a technical reader, Bitcoin is not yet bullish.

Bitcoin is struggling to climb above $16,500

BTC/USD chart by TradingView

On the daily chart, Bitcoin price has moved up slightly since finding support at $15,700. However, buyers face challenges in getting the cryptocurrency above the $16,500 level.

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Although the RSI has improved slightly from the near-oversold level, it is still below the midpoint.

What now for Bitcoin?

A mixed trading outlook suggests that BTC price could move higher or lower. There is no confirmed bullish reversal unless the cryptocurrency clears the $16,500 level. That would allow bulls to make a bullish rise towards the $19,000 resistance.

If bear pressure escalates, a price below $15,700 is still lurking. That would put Bitcoin at a potential price of $14,000 and $11,000.

In the words of Bitcoin enthusiast Michael Saylor, if you buy BTC in a span of less than four years you just “speculate it”. Longer-term buyers would still find BTC attractive, not necessarily for four years, but until the next bull run.

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