BTC Soars to $22k, What is next?
After some fears of the U.S. central bank's commitment to tightening its monetary policy earlier this week, investors seem to have liked the Federal Open Market Committee.
Stocks rose for the fourth consecutive day, making the seemingly inversely correlated value of the dollar history. Whether that is permanent or temporary in nature remains yet to be seen. In the rare event that the stock market aligns with the movement of the USD index has resulted in the cryptocurrency markets following along.
Bitcoin has traded in quiet upwards sloping range over the last week, where its $21.000 resistance quickly got obliterated as short selling found extreme dominance at the level, building quick liquidity to the upside after which BTC has seen increased volatility, ultimately making its way to a much more important resistance area located at around $22.500
If Bitcoin managed to break above the levels aforementioned the probabilities would increase for a further rally to the upside, making levels such as $30.000 not impossible. However, until we actually break the resistance, the probability remains low, and price is likely to remain range bound for an indefinite period of time, with lower support sat at $20.000 and $19.000.
After an elongated downtrend of over 8 months, it would make sense to see a relief rally occur. This would also open up the potential for the altcoin market to recover and thrive once again.
With the week closing on a slightly bullish note, it is important to trade the charts for what they are, and not get overly excited as we are now trading at a point of resistance, as psychological aspects like greed and fear can quickly lead to hope and despair, which is not a great mindset if one is to look for objective decision making!
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