Bitcoin on July 27, 2022 – The FED boosts Bitcoin by surprise

The EDF Whale – Bitcoin (BTC) price pulls back above $22,000 amid fears earlier this week from traders and analysts over market reactions to FOMC meeting, hike announcement rate managers by the US Federal Reserve (FED).

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The FED boosts the price of Bitcoin

The price of bitcoin goes up to $23,098 on Bitfinex today, July 27, 2022, before falling back below $22,000. The cryptocurrency is trading at $22,709 at the time of writing. Its price is currently recording a significant daily gain of 8.45%.

The day is clearly in the green, as the US Federal Reserve announced a increase of 75 basis points of its key rates. June and July will thus have seen a cumulative increase of 150 basis points in just over two months, the largest increase of this type recorded since the beginning of the 1980s.

While some observers feared that today’s rate hike announcement would bleed markets, the figures released by the FED and the words of its chairman, Jerome Powell, on the future pace of monetary tightening, have greatly benefited risky assets.

Towards another rejection towards $20,000?

With this foray above $23,000, Bitcoin is once again approaching the 200-week moving average which sits at around $22,800. The inability of the bulls to keep the cryptocurrency price above this level, shows that this average is still continuing to act as a major resistancenot as essential bullish support for a sustainable recovery.

The last weekly close below this average was followed by a drop below $21,000. In the event of another rejection at this level, should the markets expect a pullback in the coming days, which this time may shake $20,000?

Today’s rise obviously does not mean that the bulls are back on the market in a sustainable way. A weekly close above the 200-week moving average remains the strong signal awaited by traders and investors, to partially confirm the start of a bullish recovery. In the meantime, Bitcoin price is still at risk of a dip below $20,000 based on historical data.

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