Bitcoin (BTC/USD) Outlook - Resistance Starting to Breakdown, Ukraine Compromise Mooted
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Bitcoin (BTC/USD) Chart and Analysis
- Bitcoin (BTC) is back in the $39.6k to $42k resistance zone.
- Russian commentary that a compromise in Ukraine may be possible lifts optimism.
Risk markets are getting a lift higher this morning on the back of a series of releases from Russia that a compromise with Ukraine may be forthcoming. According to RIA sources, Russia has said that the idea of creating a demilitarized Ukraine like Austria with its own army ‘could be seen as a compromise’ has boosted risk-on assets, including the cryptocurrency space
Bitcoin is now back in a noted zone of resistance that has held the cryptocurrency back over the last few weeks. While the gains are so far limited, a break, close, and open above $42k would be seen as a positive for BTC and open the way for a move back to a brace of prior highs just under $46k.
Bitcoin (BTC/USD) Resistance Holds Firm as Mid-Week Optimism Fades
While the technical outlook is looking more positive for Bitcoin, tonight’s FOMC policy decision may pour cold water on the move. The markets are fully prepared for Fed chair Jerome Powell to begin hiking interest rates at tonight’s meeting with a total of seven quarter-point interest rate increases priced into the market for this year. While the potential for a 50 basis point hike tonight is seen as low, a larger-than-expected move or a hawkish post-decision stance by chair Powell may well push Bitcoin back below resistance again. Traders need to price-in risk-reward accordingly before the 18:00 GMT announcement.
Bitcoin Daily Price Chart – March 16, 2022
Chart via TradingView
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