© Reuters
Investing.com – The was able to rise in value yesterday after the and form a new high at $24,207. The interest rate increase of 0.25 percent was expected by the market and had already been priced in, so it had no negative influence on the price. Also, with this rate hike, the US central bank has signaled that it is heading towards the end of rate hikes, as it eases off.
In December, the Fed funds rate was raised another 0.5 percent, and this hike was preceded by three increases of 0.75 percent each.
The press conference that followed confirmed the market assessment. Powell said disinflation (falling inflation) had started and funding conditions in the market were tightening.
In recent weeks, however, several market experts have said that there is no talk of a tightening of financing conditions. The National Financial Conditions Index, which has been on a downward trend since mid-October, is proof of this.
Source: Statista
Nonetheless, investors seem to have appreciated what they heard from Powell, and stocks and cryptocurrencies have seen gains as a result. But one can wonder if this corresponds to reality and if it is sustainable. Jeffrey Rosenberg of BlackRock (NYSE:) told Bloomberg TV:
“There’s a real disconnect between what he said, what was in the statement, what he may have meant, and what the markets think they heard.”
Bitcoin: technical benchmarks
Bitcoin is currently gaining 3.60% at a price of $23,801, while it rose 3.61% on a weekly basis.
The cryptocurrency reached a new high at $24,207, which, however, was accompanied by negative divergence (green lines). While a higher high was formed on the chart, the RSI recorded a lower high. This is a sign of a slowdown in the positive dynamic.
The 23.6 percent Fibo retracement offers support at $23.319 and should that weaken based on today’s closing price, then focus would shift to the 38.2 Fibo retracement. percent of 22,771 dollars.
Only if one manages to defend the 23.6 percent Fibo retracement support can one expect a retest of the top and an extension of the upside move.
By Marco Oehrl