Bitcoin Eyes $28k With A One-day Breakout

Bitcoin eyes $28,000 after massive breakout of 1D 50 EMA resistance in good size. The cryptocurrency market is looking bullish on the lower time frame as the major cryptocurrencies and altcoins are gaining a comfortable bounce.

Market dumps ahead of the FOMC meeting

The main buzz around the financial market over the past few days has focused on the Federal Open Market Committee. This dragged the major cryptocurrencies down from major support and resistance, with the likes of Bitcoin trading at around $20,700 and Ethereum dropping to $1,376.

Related reading: Bitcoin slips to a one-week low ahead of the Fed’s rate hike

Ahead of the FOMC meeting, rumors of a price hike triggered a rebound in the cryptocurrency market, with BTC rising to $22,000.

On Wednesday, the Federal Open Market Committee (FOMC) raised her interest by 0.75% marking Highest rate of increase since the eighties. Federal Reserve Chairman Jerome Powell stated that “an unusually large increase may be ideal in future meetings, and a period of economic slowdown will be necessary to restore price stability.”

The major cryptocurrencies in the market saw a good response after the news, with BTC trading above $23,100 and approaching the 1D 50 EMA resistance. It led to many discussions in the market that praised the rally as it may signal more gains and mitigate the bounce of altcoins.

Related reading: Bitcoin Surprisingly Rise As Federal Reserve Reveals Interest Rate Raise By 0.75 Points

“If 75 bps gives us this pump, 100 bps will definitely send us to the ATH,” Tweet embed

The perfect ingredients for a summer relief rally are in:

  • Powell has become pacifist about politics and more data-driven.
  • ETH dollar The merger is coming in September.
  • Serious impact on 3AC, °C, and more already priced at.
  • I see ETH USD to 2,400 USD and BTC USD to USD 28,000-30,000.” Tweet embed

Bitcoin breaks the 50 one-day exponential moving average in good size

Bitcoin is rising in good size, rising to a 10% increase earlier today, and if the bulls manage to break above $24,300, we would be in for a rebound to $28,000.

This is an area that BTC had a hard time after trading for more than a month in a range.

1D diagram
BTC 1D 50 EMA Breakout | source:

If BTC fails to break this key resistance, the bulls are likely to revisit $21,000-$20,700 to build more momentum for a potential breakout. If BTC fails and falls below $20,000, this will be invalidated as the bears will have more power over the bulls.

Bitcoin status on 4 hour chart

BTC on the 4-hour time frame looks good because it needs a break above the minor resistance of $24,200 to rise to the $26,800-$28,000 area.

4H BTC Chart
BTC on the 4H chart is approaching the $24,200 resistance | source:

Overall market sentiment is improving after months of bearishness and loss of interest in the crypto market. The cryptocurrency market is in high anticipation for the upcoming Ethereum consolidation.

With BTC recovering with other major altcoins, more comfort and faith will return to the market.

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