Positive vibes are reverberating through the crypto market as Bitcoin rebounded to the $24,000 after nearly a week. The popular cryptocurrency is basking in the green zone as the Feds raised the interest rates by 75 basis points.
Bitcoin is up by 3.98% in the last 24 hours and trading at $24,126. Ethereum is changing hands at $1,727. It gained 4.85%. Altcoins in the broader market have also recorded significant gains. Solana is the biggest gainer. It’s up by 9.63%. Polygon MATIC gained 8.91%, XRP 5.19%, and Cardano is up by 4.09%. The meme coins Dogecoin and Shiba Inu gained 5.40%, respectively.
Edward Moya, senior market analyst for Oanda, said the risk appetite is roaring back after a second consecutive contraction for the US economy. It raises the chances that the Fed could be looking to tighten at a softer pace at the September meeting. Moya highlighted that gains in equity markets that rose for a third consecutive day with Nasdaq, S&P 500 and Dow Jones Industrial Average all rising over a percentage point. The analyst cautioned traders not to be surprised if stock fade.
It should be noted that Bitcoin has rebounded about five times since November 2021, securing 23% – 40% gains on each recovery. But it has continued its correction every time after forming a local price top around its exponential moving averages, then falling to new yearly lows. In June, BTC faced a bullish rejection and recovered nearly 17% a month later. The popular cryptocurrency faces interim resistance in the 50-day EMA around $23,150, with a breakout clearing toward $27,000. However, the price at $27,000 would still form a lower high compared to the previous local tops.
So, another bearish move is likely.