Relentlessly making waves in the virtual finance space and often sparking a fair share of controversy, BTC has seen a substantial 8% surge since the presence of the ‘death cross’ was identified in the daily chart on September 11th. The uptick rightfully sparked the curiosity of ardent market watchers, as it came on the heels of U.S. rates traders becoming increasingly confident in the Federal Reserve’s inclination to put borrowing costs on hold for the remaining quarter.
Long-lasting optimists suggest that BTC’s leap to $27,170, a peak unseen since the 31st August, demonstrates the resilience of the top-tier cryptocurrency’s value, even as the ‘death cross’ loomed over. This term, as gruesome as it sounds, refers to the bearish crossover of the 50-day simple moving average (SMA) diving below the 200-day moving average. It’s enough to make any trader cautious. However, BTC seems to have taken it in stride, potentially leaving hesitant sellers second-guessing their decisions and questioning the credibility of the ‘death cross’ as a stand-alone predictor of peril.
Simultaneously, the Federal Reserve plays its part on a grander scale. As they eye a 5.25% to 5.50% unchanged rate this Wednesday, the odds are looking favourable. The statistics indicate a stirring 99% chance of the Fed maintaining a steady rate, effectively providing an underlying backbone to the Bitcoin boom.
Come November and December, however, the stability may witness a subtle shift. Doubt emerges from the shadows, as the future odds slim down to 69% and 58% respectively. Nevertheless, as BTC battles the tumultuous tides of the death cross and concurrently rides the wave of an unaltered Federal Reserve rate, the outcomes are unpredictable.
In this thrilling game of numbers and predictions, an overarching question still lingers – is it the unwavering faith of the investors that is driving the recent success of BTC or merely a strategic interplay of market dynamics and well-timed Federal Reserves decisions? Whatever the answer may be, BTC continues to command attention and the saga continues. Sheldon Reback edits this piece.
Source: Coindesk
