Bitcoin (BTC) price has been consolidating in the $27k-30k range for quite a while now. The prolonged sideways BTC price action suggests that a major move is just around the corner. The biggest cryptocurrency by market cap has seen massive volatility spikes lately fueled by rumors and the ongoing banking crisis.
On Friday, Bitcoin price once surged to $29,551, which was the highest level in this week. However, the price failed to gain strength above the Monday highs and got rejected. At the time of writing, the pioneering cryptocurrency is trading at $29,076 after rising by 0.86% in the final trading session of the week.
BTC Price Reacts To The 25 Bps Rate Hike
The back-to-back rate hikes by the US Federal Reserve have kept the crypto prices in check. However, this week’s 25 bps rate hike after the conclusion of the FOMC meeting was shrugged off by the markets as the BTC price has risen since the news. This was followed by a 25 bps rate hike by the European Central Bank yesterday, which was also priced in like the US Fed’s announcement.
Even though the US FED remained hawkish in its fight against inflation, the FOMC statement also hinted at a potential pause. This was taken as a positive sign by the markets. The traditional and crypto markets appear to be hanging by a very thin thread as all the major indices and the Bitcoin price are retesting their major resistance levels on charts.
Bitcoin Price May Hit $32k In May
Despite a sluggish price action in the past few weeks, BTC price still seems to have some gas left in the tank. There is a high possibility that the price grabs the liquidity above its local high of $31,000 in the coming days. However, such a move might not be tradable as the risk-to-reward ratio will not be very attractive.
My Bitcoin price prediction will remain bullish for the mid-term as long as the price holds the $25k level. A break below this level might trigger a panic in the crypto markets, increasing the selling pressure. Therefore, to avoid getting caught in the fakeout, it is better to wait for the confirmation before entering into any trade right now.
I’ll keep sharing updated outlook on BTC in my free Telegram group that you’re welcome to join.
