Bitcoin sinks into uncertainty as Fed releases January meeting minutes

Bitcoin (BTC) price fell at the open yesterday (February 16) as markets held their breath in anticipation of upcoming Federal Reserve (Fed) moves.

BTC/USD 1 hour frame chart | Source: TradingView

Past breakouts “make sense” for Bitcoin

Data from TradingView shows that bitcoin price hit an intraday low of $43,312. It struggled to reach $44,500 but fell shortly thereafter as traders waited for signals from the Fed on inflation, tapering asset purchases and a timeline for rate hikes.

The crypto market is highly correlated with stocks, any disruption to traditional markets in the form of rising interest rates could spell doom for crypto investors.

Valid as of 01:00 local time, the written document contains the results of the Federal Open Market Committee (FOMC) meeting held in late January.

Commenting on the event, Gina Martin Adams, Director of Equity Strategy at Bloomberg Intelligence said: guess i think The reduction in the Fed’s balance sheet, which currently totals nearly $9 trillion, has had a more negative impact on equities than a rise in interest rates.

“I’m still more concerned about the balance sheet than the rate hike. Since 2010, balance sheet changes have accounted for nearly a third of the change in market multiples (a ratio calculated by dividing an asset’s market or estimated value by a specific line item in the financial statements), and every 100bp contraction in the balance sheet could be the Result in a 29 basis point reduction in S&P 500 P/E.”

*P/E measures the ratio of a stock’s market price (price) to earnings per share (EPS).

For crypto traders, cautious sentiment takes up almost all of the space.

“I still believe there is plenty of upside, but a short-term pullback and/or cut before major resistance is broken would make sense sooner,” the popular Crypto Chase Twitter account said. comment.

Meanwhile, analyst Rekt Capital is focusing on the high time frames rather than the hourly chart. After a disappointing Sunday last week, there is still a chance to see an uptrend at the end of the week.

“It’s midweek but BTC is still positioned in the orange circle for a weekly close. Changes may still materialize in the coming days, but this is the weekly close that will most likely confirm the bullish bias.”

Bitcoin bid slightly higher

A look at the order book composition of the major exchanges for the day reveals even more encouraging signs.

Additional buying support opened at $43,000 in the last 24 hours, along with a higher volume support zone just below $42,000.

At the same time, data from on-chain analytics resource Material Indicators shows sell orders beginning to cut at $45,000.

Bitcoin trade orders data chart | Source: Material Indicators/Twitter

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