Key Points
- Bitcoin (BTC) regained its $70,000 value following the closing of Q1 on March 29.
- Federal Reserve Chair Jerome Powell’s cautious stance on rate cuts seemingly bolstered Bitcoin’s value.
Bitcoin (BTC) saw a resurgence to $70,000 after the end of Q1 on March 29.
The cryptocurrency seemed to find a temporary support level at the previous all-time high of $69,000 over the weekend.
Fed Chair’s Approach Aids Bitcoin
In the latter part of the day, Bitcoin saw an increase of around $1,000. This was seemingly due to remarks made by Jerome Powell, the Chair of the United States Federal Reserve.
During an interview at the Macroeconomics and Monetary Policy Conference in San Francisco, California, Powell expressed a cautious outlook on both inflation and the economic forecast.
Powell emphasized that the Federal Reserve was not in a rush to implement interest rate cuts, a crucial event for risk assets. He noted that the current growth and labor market were strong, and inflation was on a downward trend.
Market Predictions and BTC Price Analysis
According to data from the CME Group’s FedWatch Tool, the market currently predicts a 61% chance of a 0.25% reduction in June. This would be the first such cut to occur at that month’s Federal Open Market Committee (FOMC) meeting.
The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure, also met expectations at 2.5% on March 29.
As for the future of Bitcoin’s price, analysts are focusing on the weekly, monthly, and quarterly candle close. Notably, a trader known as Rekt Capital suggested that a weekly close above the old all-time high of $69,000 would push Bitcoin closer to a breakout.
Other traders are also observing positive on-chain signs. Kevin Svenson, for example, pointed out the moving average convergence/divergence (MACD) oscillator on daily timeframes, which appears to be “positioned for a cross-up.” This event could coincide with a potential Bitcoin price breakout beyond the all-time highs near $74,000.
