Bitcoin hits new 9-month highs above $28,000 as markets flip-flop over FOMC

Bitcoin hits new 9-month highs above ,000 as markets flip-flop over FOMC

Bitcoin (BTC) hit new nine-month highs after Wall Street opened on March 21 as a key interest rate decision by the Federal Reserve loomed.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

Bitcoin price rises despite conservative Fed view

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $28,500 on Bitstamp.

The latest within a succession of multi-month highs, the latest BTC price action precedes what promises to be a volatile day for the markets.

The Fed will announce how far – if at all – it will raise the key rate on March 22, with a pause in the hike cycle seen as a boon in waiting for risk assets.

“Very interested to see the outcome of tomorrow,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of a Twitter update.

“Potential sweep into the high, closing the CME gap, catching all and creating bearish divergences is an ideal concept. Key zone $28,700.”

BTC/USD Annotated Chart. Source: Michaël van de Poppe/Twitter

Bitcoin nevertheless produced interesting moves on March 21, with the dollar’s gains coming together with the volatility of overall crypto market dominance.

“Altcoins are bleeding, while Bitcoin is still consolidating around the peaks. Not the signs you want to see,” Van de Poppe previously warned.

“Money rotating from altcoins towards Bitcoin amid fears of tomorrow’s FOMC meeting. I would stay relatively calm on positions as well. Obvious opportunities will emerge.”

The ensuing comedown after the Wall Street open was described by popular trader Crypto Tony as an “interesting dump on BTC dominance creating a top in Altcoins.”

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Bitcoin crypto market cap dominance, 1-hour candlestick chart. Source: TradingView

The mixed signals reflected market ideas for the Federal Open Market Committee (FOMC) meeting. According to CME Group’s FedWatch Tool, most now expect a rate hike of 25 basis points, as opposed to the pause favored earlier.

Fed target rate probability chart. Source: CME Group

“All classes” buy BTC

Analyzing trading behavior, chain monitoring resource material indicators, meanwhile, revealed general buying on the largest global exchange Binance.

Related: Will Fed Stop Rate Hikes? 5 things to know in Bitcoin this week

A snapshot of the BTC/USD order book showed both large and small volume increasing exposure ahead of the FOMC.

$28,500 and $29,000 constituted the strongest resistance levels at the time of writing, while the nearest significant support was further from the spot price of $27,000.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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