Bitcoin price steadied and broke out of its triangle formation as US Federal Reserve officials agreed to slow the pace of interest rate hikes.
FOMC minutes of the meeting show that US policymakers are focused on controlling the pace of price hikes.
Bitcoin price broke past the 50-day Exponential Moving Average at $16,714, despite a slew of liquidations at $16,575.
Bitcoin price began the Asian trading session flat, BTC changed hands at $16,815 based on data from Coin Gecko. The recently released minutes from the Federal Open Market Committee December meeting did not paint a clear picture of what the majority of traders were expecting. Fed members generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that core inflation was on a sustained downward path back down to 2%.
Several members commented that historical experience cautions against the premature loosening of monetary policy. The reaction among crypto traders was mixed, and investors await further clarity on the Fed’s stance as well as the size of the next interest rate increase.
Michaël van de Poppe, crypto analyst, and trader said Bitcoin is poised to run up before the next FOMC meeting takes place on January 31 – February 1. The asset could witness a correction in its price post the meeting soothe run-up prior to the meeting, towards its next crucial resistance at $17,000, is crucial to keep BTC from collapsing.
