Why the crypto market thrived after a FED decision?


Bitcoin and the crypto market are going up on Wednesday. The Federal Reserve (FED) announced an increase by 25 basis points. The Fed Chairman Powell said at the news conference

We are alert to the risks of further upward pressure on inflation and inflation expectations. The Committee is determined to take the necessary measures to restore price stability. The US economy is very strong and well positioned to handle a tighter monetary policy.

Technical analysis of the best cryptocurrencies

Bitcoin

Bitcoin is trading in a range, but with recent bullish price action, with prices rising above the Tenken-sen ($39,880), Kijun Sen level at $39,828 per coin, and below another cloud called Ichimoku Kumo ($41,025) indicating what investors should look for potential buying zones.

Related literature | Bitmain rolls out more powerful and energy efficient Bitcoin mining rig to date

Bitcoin’s primary support level is $37,000 (lowest seen as of March 7), and if the price falls below this level, it could return to bear territory with possible declines to $34,000/$32,950 (January 24 low)

If the cryptocurrency closes above $41,700 today. However, there could likely be another rise to around $42,600 (March 9 high) / $45,356 (200-day EMA) / $50,000.

With the price of Bitcoin, it might be a good time to buy a dip at $40,000 with SL around $37,000 for a TP of $50,000.

Bitcoin started the day with a .4% drop | Source: BTC/USD chart of Tradinview.com

Ethereum

Ethereum has fluctuated within a tight trading range between 2,810 and $2,492 for the past week.

The ETH/USD pair has reached a high of $2,809 on the daily chart, but is currently trading around that value. The pair is trading below Tenken-sen ($2,627), Kijun-sen ($2,672) and Ichimoku Kumo cloud ($2,870), confirming the minor weak trend.

Ethereum price has strong support at $2,445, and if it falls below this level, it could confirm the bearish trend. So a dip to the February 24 low of USD 2,300 could be ahead of us here, with potentially more downsides ahead.

Related literature | TA: Ethereum Back to Square One, Why ETH Might Rise Again

The potential for a reversal of the intraday trend is there if Ethereum closes above USD 2,850 today.

After that, it is possible for the coin to jump to $2,900/$3,000. However, the bullish trend may continue if the price breaks the $3,300 support.

With the price of Ethereum, it might be a good time to buy a dip at $2,500 with SL around $2,300 for a TP of $3,300.

XRP

The price of XRP is held above the short term (55 days EMA) and below the long term (200 days EMA). If it moves below $0.70, further bearishness would be confirmed by the pattern observations. However, a short-term trend reversal would only occur if it crosses $1.02 (high December 23).

LUNA

The price of the LUNA token is held below the short term (55 days EMA) and above the long term (200 days EMA). If it crosses over $105, further bearishness would be confirmed by the pattern observations. However, a short term trend reversal would only occur if it crosses $75.

Bitcoin, Ethereum Resistance and Support Chart

cryptocurrency
Resistance
support



Bitcoin
R1- $42,600
S1- $37,000

R2- $43,500
S2- $34,000

R3- $46,000
S3- $30,000



Ethereum
R1- $2,775
S1- $2,445

R2- $2,850
S2- $2,300

R3- $3,160
S3- $2,150

Featured image from Pixabay, chart from tradingview.com

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