Bitcoin (BTC) experienced a 2% rebound on April 4th as positive signals from the United States Federal Reserve sparked a rally in risk assets. The price of BTC reached a high of $67,510 on Bitstamp during the Wall Street opening hours. This increase in BTC price coincided with a rise in U.S. stock indices, while the price of gold cooled after reaching new all-time highs above $2,300.
The previous day, Fed Chair Jerome Powell delivered a dovish tone on economic policy, suggesting that interest rate cuts, which are beneficial for risk assets, would occur before the end of 2024. Powell made these remarks during a speech at the Stanford Business, Government, and Society Forum. The next Federal Open Market Committee (FOMC) meeting is scheduled for May.
Despite Powell’s comments, data from CME Group’s FedWatch Tool indicates that the odds of a 0.25% rate cut at the May or June meeting are only 61% at best. Additionally, the latest initial U.S. jobless claims came in slightly above expectations, which further influenced market movement.
In terms of Bitcoin’s market structure, trader Pierre observed that the 200-period exponential moving average (EMA) on the 4-hour timeframes was providing support. Another trader, Jelle, found promising signals on the daily chart, particularly with Bitcoin’s relative strength index (RSI) crossing back above the key 50 point at the daily close. This hidden bullish divergence on the daily chart indicates potential upside continuation for Bitcoin.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.