Bitcoin (BTC), The Fed & S&P 500 (SPX) – FinTwit Trends To Watch

Blockchain, Technology, Smart, Bitcoin, Money

  • Bitcoin continues to trade within a defined support and resistance band
  • Rates markets awash with speculation as yield curve flattens
  • U.S. equities fall from record highs

ELON MUSK’S SOCIAL MEDIA SHENANIGANS DIRECTING BITCOIN (BTC)

Bitcoin pushed above the $40000 mark this week after tweets from Tesla CEO, Elon Musk helped boost the cryptocurrency. In his tweet, Mr. Musk alluded to the fact that Tesla may restore the use of Bitcoin as a payment method should energy sources used in BTC mining come from renewable basis’.

In other news, the FBI managed to track down the physical identity of cyber criminals who received $2.3 million worth of Bitcoin. This could significantly dent the anonymity associated with the digital currency going forward.

BITCOIN (BTC) TECHNICAL ANALYSIS

Bitcoin daily chart:

Bitcoin daily chart

Chart prepared by Warren Venketas, IG

Bitcoin price action has been comparatively subdued recently with the daily chart exhibiting a rectangle pattern (yellow). This pattern gives market participants hopes of a potential breakout either above or below the rectangle. While many analysts believe in further upside, traders should look for a confirmation breakout before favoring any directional bias.

Bulls will be looking for the recent swing high as initial resistance at $41303.6 while Saturday's low at $34659.6 will hold as support.

HAWKISH SHOCK DISRUPTS MARKETS

The Federal Reserve met this week announcing somewhat of a disruption to prior expectations whereby the March dot plot was reviewed quite significantly. The 2023 forecast projected two rate hikes during the period which caused notable changes across financial markets.

This change in sentiment could be fleeting as these are long-term adjustments that have been reacted to; while the current environment remains extremely accommodative. In late august this year, the Jackson Hole symposium could provide the next bout of important transformation but until then it is likely we may see minimal change to current forecasts.

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