Bitcoin (BTC) displayed resilience in the face of market uncertainties, with old all-time highs at $69,000 shaping up as tentative support. The digital asset gained approximately $1,000 during the latter part of the day, buoyed by remarks from Jerome Powell, Chair of the United States Federal Reserve.
In an interview at the Macroeconomics and Monetary Policy Conference in San Francisco, Powell struck a cautious tone on inflation and the economic outlook. He emphasized the Fed’s reluctance to rush into interest rate cuts, citing robust economic growth and a strong labor market. Powell’s comments reassured investors, providing support for risk assets like Bitcoin.
Market anticipates interest rate cut
Speculation about a potential interest rate cut heightened, with June emerging as the favored month for such a move. According to data from CME Group’s FedWatch Tool, there is a 61% probability of a 0.25% reduction at the June Federal Open Market Committee (FOMC) meeting. The cautious approach outlined by Powell underscores the Fed’s commitment to careful deliberation before any policy adjustments.
March 29 saw the release of the latest Personal Consumption Expenditures (PCE) Index, a key inflation gauge closely monitored by the Fed. The index met expectations, registering at 2.5%. This data reaffirmed the Fed’s assessment of inflationary pressures, further shaping market expectations regarding future monetary policy decisions.
Technical analysis points to positive outlook
Bitcoin’s price action remains under scrutiny, with attention focused on weekly, monthly, and quarterly candle closes. Analysts highlight $69,000 as a critical level, with a close above signaling a potential breakout for Bitcoin. On-chain signals, including the moving average convergence/divergence (MACD) oscillator, also provide positive indications for BTC’s price trajectory.
Traders closely monitor the MACD oscillator on daily timeframes, which is positioned for a potential cross-up. This technical indicator suggests a bullish momentum shift, coinciding with the possibility of Bitcoin surpassing its all-time highs near $74,000. Positive on-chain signals complement market sentiment, indicating growing confidence among investors.
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