The price of Bitcoin is up 0.11% at $38,551.41 on mid-Tuesday trades.
Bitcoin price opened the month with a bullish candle gaining 2.20% on May 1, 2022, as it ended the previous month at $37,664.10. It opened this week with a bullish Doji candle, indicating indecisiveness among market participants, gaining a meager 0.10% on Monday.
The crypto market didn’t cash in the momentum of the US indices growth during its closing period on Monday. Market participants are reluctant to take a fresh new position as they await the Fed’s decision on Wednesday.
The Federal Open Market Committee (FOMC) meeting on Wednesday could result in a rate hike of 50 basis points. Typically, increasing interest rates negatively impact risky assets like equities and cryptocurrencies as investors pull capital out of volatile markets. The cryptocurrency “Fear and Greed Index” was down 1 point to 27 by Tuesday, reading “Fear.”
May is typically a good month for Bitcoin, ending positively seven times in the past 11 years. However, some analysts think this year could be different. These analysts cite the recent tendency of the cryptocurrency to mirror stock market movement, increasing interest rate, declining economic outlook, and general aversion to risky investments.
On the technical side, the RSI of Bitcoin stood at 41.85 and is currently trading above MA (5) but below MA (20) and MA (50). So, SELL position can be taken with the following target and stop-loss:
TRADE SIGNAL: BITCOIN – SELL: 37500, TARGET: 36055, AND STOP-LOSS: 38600