Crypto markets shine after U.S. Fed hikes half percentage point

May 5, 2022 - 3 weeks ago
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The world’s largest cryptocurrency by market value, Bitcoin ended higher after the U.S. Federal Reserve raised interest rates by 50 basis points today, the biggest hike from the central bank since 2000.

Bitcoin bulls came in greater numbers after the announcement and elevated the market price away from the support located at US$37,150.00 and now claim the US$39,475.00 resistance level.

From the break, now expects the upside move to generate further momentum and take the challenge to the US$40,450.00 level.

Reassess from there as beyond this point should potentially reopen the path to the challenge of the Fibonacci (61.8%) level at US$44,300.00.

Based on the technical indicators for Bitcoin, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is positive after the bullish divergence ‘kicked in’ and also breaks through the 50-midway point.

Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias; however, potentially in a prime position to support a positive bias since the bullish divergence strengthened, while the ADX (trend) indicator indicates a ranging market.

Any pullback views the immediate support located at US$38,200.00, with US$35,500.00 to US$29,800.00 located beneath.

Daily Chart of Bitcoin

The bulls rushed in greater numbers for Ethereum on Wednesday after the U.S. Federal Reserve delivered a widely expected interest-rate hike.

As the second-largest cryptocurrency surges away from the bullish support line (uptrend) at US$2,700.00, the market price action manages to reclaim the Fibonacci (61.8%) retracement at US$2,900.0.

Based on the technical indicators for Ethereum, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has broken through the 50-midway point (positive), while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, although it is improving to a positive bias and the ADX (trend) indicator indicates a ranging market.

From the break of the Fibonacci (61.8%), retracement at US$2,900.0 now exposes the region of US$3,150-60. Reassess from there.

Conversely, any pullback views the support at US$2,700.00, which, if breached, would reveal the US$2,500.00 area. Reassess from there.

Daily Chart of Ethereum

Cardano’s (ADA) price action displays one of its best performances since early April after the U.S. Federal Reserve raised its benchmark interest rate by half a percentage point on Wednesday.

With the bullish cavalry returning and capturing the US$0.85 level/resistance, it now sets up a potential bullish bias and generates further momentum to US$1.05. Reassess from there.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is positive, while at the same time, Moving Average Convergence Divergence (MACD) is positive, with ADX (trend) indicator indicating a ranging market.

Any renewed weakness is expected to draw a bullish defence from the region of US$0.86, with the broader bullish foundations holding at US$0.74-78.

Daily Chart of Cardano (ADA/USD)

Binance snapped out of its consolidation pattern on Wednesday after the bulls were inspired by the U.S. Federal Reserve’s announcement of hiking its interest rates, the biggest rate increase since 2000.

After managing to surge away from the key support area of US$370.00 to US$380.00, the market bulls have managed to overthrow the resistance level at US$396.00 and recapture the US$405.00 level, which now exposes the US$418.00 to US$428.00. Reassess from there.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has reinstated its bullish bias, while the Moving Average Convergence Divergence (MACD) supports a weak positive signal, while the ADX (trend) indicator indicates a ranging market.

Daily Chart of Binance

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