• US Federal Reserve expected to keep funds rates on hold
  • A dovish message will pose difficulties for the US dollar
  • Bitcoin Could Overcome Resistance Seen at $30,000

Today is an important day for financial market participants as the US Federal Reserve announces its monetary policy decision. The consensus is that the Fed will “hold off” rate hikes at its June meeting, but the tone will be hawkish, suggesting another rate hike is possible in July.

Therefore, the message to market participants can be complex. On the one hand, the Fed is sending a dovish message by pausing rate hikes. On the other hand, by suggesting another rate hike in July, the message becomes hawkish.

In other words, today’s decision could have something for both bulls and bears. For Bitcoin, the direction of the dollar is important as Bitcoin has been moving alongside the dollar these days.

The dollar, for example, hit a new high last October when U.S. stocks rallied from lows. Bitcoin is no different, but its rally only started in 2023.

Bitcoin charts by TradingView

Bitcoin trapped between two round levels

Round numbers are an important level in technical analysis. People tend to profit around such levels. For Bitcoin, two levels will be very important in 2023: $30,000 on the top and $20,000 on the bottom.

The former has shown resistance, and the market is close to it, suggesting that the declines seen in stocks over the last few months may just be a continuation pattern. Therefore, if the bulls can overcome resistance, Bitcoin is likely to move higher.

Conversely, you can also find descending triangle possibilities. A clear break below the support could lead to a further drop towards $20,000.

Overall, the bias remains bullish while Bitcoin trades near the $30,000 levels. Resistance may be easily defeated in a dovish Fed.

By Jules

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