The price of Bitcoin has seen a small uptick during today’s trading session, but the cryptocurrency has been unable to break the sideways trend. Today, the U.S. Federal Reserve (Fed) announced a 25 basis points (bps) rate hike, but uncertainty in the financial world remains king.
As of this writing, Bitcoin (BTC) trades at $28,600 with sideways movement across the board. Other major cryptocurrencies in the top 10 by market capitalization have experienced similar price action except for XRP and Cardano (ADA), which record small losses in the past 24 hours.Bitcoin Stun By Economic Uncertainty, But Bulls Could Take The Upper Hand
According to a from the trading desk QCP Capital, Bitcoin, and the crypto market have been in an 8 week long confusion phase. As a result, the nascent industry experienced a decline in its Implied Volatility (IV), leading to the current sideways price action.BTC Bull Run Imminent?
Thus, the Fed must continue bailing out banking institutions and injecting liquidity into the financial markets. The debt ceiling presents a similar issue; the. As a result, more and more liquidity could enter financial markets allowing Bitcoin to breathe and resume its bullish momentum. According to QCP Capital, this phenomenon is already happening. Due to the banking crisis in the U.S., the Fed has been forced to intervene, increasing the side of its balance sheet by almost $500 billion over the past two weeks, as seen in the chart below.The analog compares BTC price action now (red line) vs. BTC during the 2020 cycle (yellow line) by lining up the March 2020 and March 2022 lows. It shows that while we are likely in for a period of consolidation here, the underlying trend ahead is still strongly to the upside.Charts from QCP Capital and Tradingview