Daily Price Outlook
The BTC/USD pair is currently trading 3.05% lower at 27,360. The price declined following the Federal Reserve's interest rate hike, as Powell emphasized the need to control inflation.
FOMC Interest Rate Decision
The US central bank raised interest rates as predicted by a quarter point on Wednesday. The Federal Open Market Committee (FOMC) made the move due to ongoing concerns about inflation. Fed Chair Jerome Powell stated that the FOMC is "strongly committed" to getting inflation back to its target of 2%. Consequently, the Committee raised the federal funds rate target range to 4-3/4 to 5 percent.
However, the FOMC also acknowledged the current banking crisis in a statement that accompanied Wednesday's announcement. The statement indicated that recent events could result in tighter credit conditions for households and companies, affecting economic activity, hiring, and inflation.
As expected, the dollar fell to almost a seven-week low as the Fed increased interest rates. The US Dollar Index (DXY) is currently trading at 102.10.
The cryptocurrency market was optimistic that Powell would either not raise rates or make highly dovish comments. However, Bitcoin declined after an earlier surge as Powell predicted that rate cuts in 2023 were unlikely due to the Fed's decision to raise interest rates.
SEC’s Action on Coinbase
The US Securities and Exchange Commission (SEC) has recently been actively pursuing cryptocurrency companies, with Coinbase being the latest target of SEC investigations.
On March 22, the SEC sent Coinbase a Wells Notice, expressing concerns over their listed digital assets, staking services, and other issues. A Wells Notice serves as a warning to a business that enforcement action may be taken against them for potential securities law violations.
However, Coinbase remains confident in the legitimacy of its assets and services.
The SEC's investigation of Coinbase has put pressure on the broader crypto industry, leading to a fall in both the BTC/USD and the overall cryptocurrency market.
BTC/USD Intraday Technical Levels
Pivot Point: 27565
BTC/USD – Technical Outlook
Bitcoin experienced a downside correction after reaching the resistance zone of $28,500. However, it found support at around $26,600 and is now trying to increase again. The failure to clear the resistance zone of $28,500, coupled with the Fed's decision to increase rates from 4.75% to 5%, resulted in a bearish reaction that caused BTC to fall below the support zone of $27,500.
The next significant resistance level is around $28,000, and if BTC manages to close above this level, it could signal the start of another major increase, potentially pushing the price toward $28,500 or even the resistance zone of $28,850.
On the other hand, the next major support level is around $26,600, and if BTC falls further, it could test the support zone of $26,000. The next significant support level is around $25,200.
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