As Bitcoin continues to endure scrutiny from the SEC and banks, and pressure from the rising interest rates and an under-pressure stock market, expert crypto analyst Jonathan Fiorenza believes that any pullbacks from the current price point offer a significant opportunity. He is of the opinion that high-timeframe investors should leverage this.
Bitcoin Holds Strong
Bitcoin’s price point of $27,727 indicates that the cryptocurrency is performing well, despite facing challenges from regulatory bodies and a volatile market.
However, here’s how people could still benefit.
With all moving averages angled upwards, strong momentum could push prices higher, though structural changes and upcoming airdrops could also play a role in influencing the market’s behavior.
Meanwhile, the S&P 500 is stuck in a range between the 0.75 and 0.5 levels, with a break either up or down likely to determine the next direction of the market. Traders can use this to their advantage by keeping a close eye on the broader market’s movements and monitoring the range’s upper and lower limits.
Rising Interest Rates Challenge Crypto and Stock Markets
The quarter-point interest rate rise by the Federal Open Market Committee (FOMC) in line with expectations presented a challenge for both the crypto and stock markets.
Traders took profits on a 20% gain over a seven-day rolling period, causing Bitcoin to slide under $27,000. BTC-tracked futures traders experienced over $150 million in losses, with longs accounting for over 75% of these losses.
The FOMC decision reinforced the Federal Reserve’s commitment to returning inflation to its 2% objective. However, traders were caught offside by the move higher after the meeting, causing billions in open interest to be effectively washed out.
