Bitcoin Rallies Post-Fed

Bitcoin bulls have better reason to be optimistic today with the futures market pushing firmly higher. This move comes despite the Fed hiking rates this week and signalling the likelihood of further tightening to come. Previous hawkish actions and/or signals from the Fed have dented Bitcoin demand but the leading crypto asset looks to be weathering the storm this time. The resilience of the Bitcoin market is likely lined to the roust risk tone we’re seeing ahead of the weekend amidst fresh upside in tech stocks which continue to surge higher this week. With the tech rally unbowed by the rise in USD, BTC has room to continue higher near-term until the dynamic changes. Indeed, if USD gives first, it might provide the fuel for a breakout move in BTC which has been carving out a base in recent months, threatening an upside push.

Regulatory Issues Ignored

Indeed, the rally in Bitcoin shows that bulls are also shrugging off the regulatory setbacks we’ve seen for the market this week. The Clarity Act failed to pass a procedural vote in the Senate this week which will now lead to delays as the bill will need to be brought again at some-point. However, the market reaction we’re seeing in in contrast to what many expected in such circumstances suggesting that the bill is not as important as many thought for BTC bullishness. As such, focus remains on the current tech driven rally and the path of USD.

Technical Views

BTC

For now, BTC holds above the $74.270 level and while that marker remains as support, focus is on a fresh challenge of the $83,385 level. Above there the $94,730 level is the higher bull target to note in line with momentum studies which are rebounding off lows.