02.02.2023 04:49 PM
Bitcoin resumes upward movement amid Fed meeting results

Bitcoin was at a crossroads, and many technical metrics pointed to a high probability of a local correction. The cryptocurrency remained overbought, and trading volumes began to fall. At the same time, sellers began to seize the initiative, which threatened to reduce BTC quotes.

This image is no longer relevant

The Fed meeting, being significant for both the global economy and the crypto market, was a decisive factor for investors. As a result, Bitcoin resumed its upward movement, and the target of $25k–$28 at this stage does not look unattainable.

Fed meeting results

The Federal Reserve confirmed market expectations and raised the key rate by 0.25%, thus giving reason to believe that the easing policy is about to end. After the February meeting, the key rate reached 4.75%.

On the CME, the probability of a 0.25% rate hike in March 2023 is estimated at 82%. Also, leading investment analysts believe that despite officials' statements, the Fed will begin lowering rates as early as 2023.

This image is no longer relevant

Federal Reserve Chairman Jerome Powell said that despite the success in the fight against inflation, a rate hike is appropriate. This means that the rate will reach at least 5%. At the same time, the official acknowledged that a deflationary movement had begun.

Powell said he still supports the decision not to cut the rate in 2023. However, the official noted that following the results of March, the Fed will review the policy of raising the key rate. The head of the regulator also noted that there will be several more increases in the indicator before the pause begins.

This image is no longer relevant

There is no denying that Powell's words are sounding more positive, despite the official's reserved manner of communication. In the medium term, the markets should expect inflation rate to continue to decline and a slowdown in the quantitative easing policy.

This means investment flows, including into cryptocurrencies, will increase significantly in 2023. Another important signal for this was the updated forecast of the World Bank, which expects the global economy to grow by 2.9% in 2023.

BTC/USD Analysis

In addition to the positive results of the Fed meeting, it became known that CME whales have almost completely reduced their short positions. The last time this was observed before the start of the bullish rally in August 2020.

This image is no longer relevant

Bitcoin also managed to "resurrect" the bullish idea thanks to a significant activation of buyers. As a result of yesterday's trading day, the cryptocurrency managed to completely absorb the bearish volumes from January 30.

Subsequently, BTC continued its upward movement and, as of February 2, reached the $24.2k resistance zone. The cryptocurrency also broke through the $22.9k–$23.4k consolidation range. As of writing, Bitcoin is trading above $23.8k.

This image is no longer relevant

Technical metrics are moving sideways, indicating a decrease in buying intensity. However, this is a temporary consolidation that will lead to a retest of the $24k–$24.2k zone. Bitcoin proved that there will be no corrective movement in the near future.


The positive results of the Fed meeting suggest that Bitcoin is preparing to update the local high. Buying and on-chain activity continues to rise, thus, we should expect an update of the local high around $24k–$25k in the near future.

Artem Petrenko,
Especialista em análise na InstaForex
© 2007-2023
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposite US $ 3.000 em sua conta e receba $9000 mais!
    Em Maio nós sorteamos $9000 na campanha Chancy Deposit!
    Tenha a chance de ganhar, depositando $3,000 em sua conta de negociação. Após cumprir essa condição, você se torna um participante da campanha.
  • Trade Wise, Win Device
    Abasteça a sua conta com pelo menos $500, inscreva-se no concurso e tenha a chance de ganhar dispositivos móveis.
  • Bônus de 100%
    Sua oportunidade única de receber um bônus de 100% em seu depósito
  • Bônus de 55%
    Solicite um bônus de 55% em cada depósito
  • Bônus de 30%
    Receba um bônus de 30% toda vez que você fizer um depósito em sua conta

Recommended Stories

Não pode falar agora?
Faça sua pergunta no chat.
Widget callback