Buying Bitcoin as Crypto Price Consolidates After Last Week’s Fall
Cryptocurrencies turned lower last week after four 50 bps hikes form four central major banks, but the decline might have ended
Cryptocurrencies continue to remain bearish overall, as the highs keep getting lower on the longer charts, but it seems like they are close to a bottom, after sellers look reluctant to push below early November lows in major digital coins. In fact, crypto coins turned bullish for about a month since the middle of November. The decline post-FTX drama stopped and cryptocurrencies consolidated for about a week, before buyers started to push higher and ear;y last week we saw a jump, with Bitcoin climbing above $18,300 as the sentiment improved after the soft US consumer inflation report CPI.
Risk assets turned really bullish on hopes that the FED would start to slow down with rate hikes after several 75 basis points (bps) rate hikes in the last several meetings. They did slow down to 50 bps and made some less hawkish remarks, but they weren’t as dovish as the market would have wanted, which turned the sentiment negative in stock markets and in cryptocurrencies.
Bitcoin H1 Chart – The 50 SMA Holding As Support
Will we see a bullish reversal after the consolidation?
The FED rate decision was followed by three 50 bps hikes from the Swiss National Bank, the Bank of England and the European Central Bank, with the latter still keeping a bullish bias. So, the markets are worried once again about a hard landing for the global economy and a possible recession, hence the bearish move last week.
But the decline has stalled and we are seeing some consolidation for the last three days. The 50 SMA (yellow) is also acting as support on the hourly chart now after the BTC price moved above this moving average, showing slight bullish pressure. So, this looks like the consolidation in early the second week of November before buyers came back in and pushed cryptocurrencies back up. Our buy BITCOIN signal was closed in profit during that bullish move earlier this month. So, we decided to open another buy BTC signal after last week’s reversal, given the fact that Bitcoin is oversold on the daily chart.
Bitcoin BTC Live Chart
[[BTC/USD-graph]]
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