A popular crypto strategist predicts how Bitcoin (BTC) in response to the announcement of a new round of rate hikes by the Federal Reserve.
Pseudonymous analyst Pentoshi tells his 540,600 Twitter followers that he sees Bitcoin rallying with tech stocks once markets digest the news from the Federal Open Market Committee (FOMC) meeting.
“So many stocks at or around their March 2020 lows AFTER the Covid crash. Spotify, Netflix, Zoom, Paypal and many more. Post FOMC rally for stocks and Bitcoin In the short term, I think so many are at key pivot points to get established.”
The Federal Reserve is expected to hike interest rates by 50 basis points after the May 4 meeting, according to CNBC inflation to contain
Popular crypto trader Light agrees with Pentoshi’s prediction that BTC is likely to rise after the FOMC meeting as he says the announcement will be a buy-the-news event.
“candlestick-Observers, line drawers and other similar cave dwellers will be stunned again after they think they are trading BTCUSD and find out the truth. Think VIX comes out post-FOMC. Thin liquidity and options will do the rest. Sell the rumour, buy the news, again…
This becomes a buy-the-news event again at almost every Fed result.”
Looking ahead to the key levels to watch for Bitcoin over the coming days, Pentoshi says a move above its immediate Resistance at $39,700 will trigger a rally to $42,000.
“BTC will monitor $39,700 for the bias point. Above = Squeeze to $42,000. Stay agile, fewer sidelines from my side.”
At the time of writing, Bitcoin is changing hands for $37,958.
Check the price action
Source: Crypto News Deutsch