By Marcus Sotiriou, Analyst at the publicly listed digital asset dealer GlobalBlock (TSXV:BLOK).
Bitcoin and the crypto market noticed a major bounce yesterday, earlier than discovering resistance at $19,666 – the 2017 bull market high, a key resistance. Bitcoin stays under $20,000 for now as traders are very cautious forward of the Federal Reserve choice tomorrow, adopted by a information convention with Chair Jerome Powell.
The market is at present pricing in a chance of an 82% likelihood of a 75 foundation level charge hike, and a 18% likelihood of a 100 foundation level charge hike. As the likelihood of no less than a 75 foundation level charge hike has been totally priced in by traders, I feel a 75 foundation level charge hike may very well be priced in, in the short-term. However, central banks are very aggressive so a short-term rally could also be short-lived.
In addition to the Federal Reserve choice tomorrow, there may be the Bank of Japan financial coverage choice and Bank of England rate of interest choice on Thursday, in addition to the US Conference Board main index – preliminary jobless claims. We are due to this fact arrange for a really unstable week as traders acquire readability on the selections of central banks.