Benjamin Cowen, known for its analyzes in the crypto currency market, Bitcoin $82,775.63He said he could follow a course similar to the price movement in 2019. Experienced analyst pointed out the effects of existing monetary policies and the steps taken by the US Federal Reserve (FED) on the market. According to Cowen, Bitcoin may have difficulty holding at certain support levels, which can lead to a new fluctuation in price movements.
FED policy and Bitcoin connection
Benjamin Cowen, Bitcoin’s 20 -week simple moving average (SMA) and 21 -week exponially moving average (EMA) can be difficult to hold on the support band, he said. According to the analyst, this movement may be directly related to the Fed’s strict monetary policy.
In 2019, in a similar situation, Bitcoin broke the support band and had a harsh decline. At that time, the FED followed quantitative tightening policies and provided less liquidity to the market. According to Cowen, the Atlanta Fed foresee negative growth for the first quarter of 2024 also increases the uncertainty in the markets.
On a single screen instant prices, important data, news, latest developments, comments and discussions at Chat! Come right away from your eyes!
In parallel with these developments, uncertainty in Bitcoin’s price continues to dominate. One of the most important factors that investors should follow carefully will be the future decisions of the FED.
S&P 500 and Bitcoin interaction
Bitcoin’s movements are not only linked to monetary policy, but also to fluctuations in traditional markets. Cowen said that the weakening of the S&P 500 index may be a negative indicator for Bitcoin. According to the analyst, Bitcoin’s recovery time may be shortened if the local bottom at the end of March or early April.
The risk appetite in traditional markets may affect the price movements of risky assets such as Bitcoin. At this point, Bitcoin investors should closely monitor the developments in the stock markets.
Recently, Bitcoin is trading at $ 83,967. Market observers and analysts are uncertain about whether these levels can be protected. In order to solve this uncertainty, both the steps of the FED and the developments in the traditional markets will play a key role.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
