Bitcoin price action has surpassed $45,000 once more, as markets continue to keep traders on their toes.
Bitcoin (BTC) fell to daily lows before rebounding sharply on March 2 as the United States Federal Reserve contributed to macro turmoil.
Powell says a rate hike in March is “reasonable.”
BTC/USD fell to $43,350 on Bitstamp before the Wall Street open on March 3rd.
However, once trading began, the pair quickly recovered, with the pair being back above $45,000 at the time of writing.
The volatility followed the issuance of a new statement from Fed Chair Jerome Powell, who offered firm notice of a crucial rate hike coming this month for the first time.
“Our monetary policy has been and will continue to respond to the changing economic situation,” he said.
“Our net asset purchases have been phased off. With inflation well above 2% and a healthy job market, we believe it is fair to raise the federal funds rate target range at our meeting later this month “a month.”
Markets had long factored in the raise, but uncertainties lingered about the magnitude of the increase and how many more could follow in 2022. Powell went on to say that the Russia-Ukraine conflict posed “very unpredictable” ramifications for the US economy.
Despite this, Bitcoin rallied to near-local highs of under $45,000, erasing any concerns about the announcement.
According to trader and analyst Rekt Capital, there was reason for optimism, since BTC/USD was now in a “gap” that may launch a run towards $48,000 — the next point of sell-side resistance.
It was also interesting to see if the 50-day exponential moving average (EMA) might be reversed to support.
“A possibility may be that we’re going upwards on Bitcoin again to trap the shorts, grab the liquidity, and then go back down below $42 thousand,” Michal van de Poppe stated in a subsequent forecast on the day.
“We also have a tremendous resistance at $46,000, which I doubt we’ll be able to break in one go.”
Gains in LUNA indicate a return to all-time highs of $100.
Elsewhere, altcoins remained stable, with Ether (ETH) aiming to recapture the $3,000 level.
Terra (LUNA) was the standout among the top ten cryptocurrencies by market capitalization, maintaining a winning streak that would see it exceed $100 following its initial rejection at the start of the year.
“The total value trapped in the entire crypto ecosystem is actually performing very well,” Van de Poppe continued.
“It has only lost about 10%–15% of its $USD value in the last few months, despite the fact that the overall market has been falling precipitously. DeFi will most likely lead the next wave of the bull phase.”