Bitcoin price is consolidating around the psychological level of $40,000 for the second session in a row. For two-and-a-half weeks, the crucial level of $35,000 had remained evasive. The risk-off sentiment resulted in the bulls lacking enough momentum to push the prices to and past that level.
However, with the improved sentiment, the cryptocurrency moved past that point on Monday with minimal resistance. Since then, it has surged by about 14.61%. Notably, the cautious stance by the Federal Reserve is likely to continue offering support to riskier assets like cryptocurrencies.
On Wednesday, the Federal Open Market Committee (FOMC) maintained interest rates at near zero while leaving its asset purchase program unchanged at $120 billion per month. While speaking in a press conference, Fed Chair, Jerome Powell acknowledged that the economy has made substantial progress towards the central bank’s set goals. However, he added that the accommodative policy would remain in place until substantial progress was recorded on inflation and employment.
BTCUSD technical outlook
Bitcoin price is up by 0.20% at 40,113.64. Notably, it is consolidating around the psychological level of 40,000 for the second session. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages.
In the near term, I expect Bitcoin price to trade within a tight range before the bulls gather enough momentum to push the prices further up. The upper and lower borders of the horizontal channel will likely be at Wednesday’s high of 40,981.82 and along the 25-day EMA at 39,209.17 respectively.
A move below the lower border will place the support level along the 50-day EMA at 38,000. On the upside, a bullish breakout will have the bulls eyeing 45,000.