Bitcoin Price Surge on FOMC Day

The price of major cryptocurrency Bitcoin (BTC) saw a sudden surge during today’s trading session. Interestingly, today is FOMC day, and Bitcoin experienced a surge of optimism that pushed its price up by 1.5%.

As a result, BTC is now trading back at $84,000, right where the 200-day moving average on the daily price chart of the largest cryptocurrency currently stretches.

This mention of the moving average is necessary to outline that the current price point for Bitcoin is very important, as the 200-day MA usually represents a crucial resistance and support level for the asset in any financial market.

Even though Bitcoin has soared, the key is that it has risen right up to an important resistance price point, which currently serves as a ceiling for the major cryptocurrency, limiting further growth.

You can see for yourself on the price chart that Bitcoin has tried to break above this curve several times in recent days, and its only success so far has been to print higher lows.

Death Cross Threat for Bitcoin (BTC)

Adding to the skepticism is an emerging death cross on the daily time frame for the BTC price chart. This ominous pattern is believed to precede a downtrend, represented by the 23-day moving average crossing below its 200-day counterpart.

According to textbook technical analysis, this could mean that Bitcoin is poised for short- to medium-term losses. The current struggle to break through the important price resistance fits this outlook.

Concluding these price chart indications of what the near future holds for Bitcoin, one could argue that recent growth is merely a bull trap and that, following the rules of technical analysis, BTC is more likely to dump than pump.