Bitcoin (BTC) hit daily lows before dropping sharply on March 2 as recent comments from the US Federal Reserve increased overall volatility.
BTC/USD hourly candlestick chart (bit mark). Source: Trading View
Powell: Expect interest rate hike in March ‘appropriate’
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $43,350 on Bitstamp ahead of the Wall Street open on March 3rd.
A recovery followed as trading began, but the pair had already returned to the $45,000 mark at the time of writing.
The volatility came after the release of a new statement by central bank governor Jerome Powell, who first gave concrete information about the upcoming key interest rate this month.
“Our monetary policy is adapting to changing economic conditions and will continue to do so,” he commented.
“We have gradually stopped buying net assets. With inflation above 2% and a labor force, we expect it to be appropriate to raise the target range for the federal funds rate at our meeting later this month.”
Markets have long since entered price, but the question remains how high and how much could follow in 2022. Powell added that the conflict between Russia and Ukraine threatens to have “very uncertain” implications for the US economy.
However, all the nervousness associated with the news, Bitcoin shook off, jumping almost to local heights of just under $45,000.
Trader and analyst Rekt Capital had reason to be optimistic as far as the order book is concerned, BTC/USD is now in what looks like a “gap” that could lead to a rally towards $48,000, the next selling area. resistance.
I was also wondering if the 50-day exponential moving average (EMA) could be reversed to support it.
“The scenario could be that we go up bitcoin again to get short in the corner and take liquidity and go back to $42,000,” Cointelegraph contributor Michael van de Poppe said in a separate forecast for today.
“On top of that, we also have massive resistance in the $46,000 range that I doubt we will break right away.”
LUNA Winnings Point to Record High $100 Earnings
Elsewhere, altcoins were flat and Ethereum (ETH) wanted to regain the $3,000 mark again.
Related: Bitcoin Analysts Look to Key Levels to Hold BTC Price Nearly $45K, While Ethereum Analysts Look to $3K
Terra (LUNA) entered the top 10 cryptocurrencies by market value and continued its winning streak, hitting $100 after the first rejection at the beginning of the year.
“The total value reserved for the entire crypto ecosystem works very well,” added van de Poppe.
“In recent months, it has lost only 10% to 15% of the value of the US dollar, while the entire market has plummeted. DeFi is likely to lead the next wave of the bullish phase.”