- Jerome Powell hinted at interest rates potentially slowing down.
- Prices in the crypto and equity markets responded positively to the announcement.
- There may be strong bullish support leading up to December 13-14 FOMC meetings.
Following Jerome Powell’s rare encouraging 2022 announcement for markets recently, the crypto and equities markets responded immediately as prices in both markets surged. The price surges come shortly after Powell hinted that interest rate hikes were potentially slowing down.
The crypto market intelligence firm, Santiment, tweeted this morning that this slight reversal of market sentiment may result in strong bullish support for the crypto markets leading up to the Dec 13-14 FOMC meetings.
As can be seen by the chart shared by Santiment, the S&P 500 hit an 11-week high. The two crypto market leaders, Bitcoin (BTC) and Ethereum (ETH), both rebounded over the same time period as well.
CoinMarketCap shows that BTC is now trading $17,119.05 after its price rose 1.49% over the last 24 hours. Meanwhile, ETH’s price has risen 1.24% to now stand at $1,284.67.
The price of BTC is currently trading above the daily 9 and 20 Exponential Moving Average (EMA) lines. The bearish margin that exists between the two EMA lines is narrowing as the daily 9 EMA line is looking to cross bullishly above the daily 20 EMA line.
This bullish cross of the two EMA lines may not happen since the daily RSI line is sloped negatively and there is more sell volume in the market than buy volume currently. Traders may be taking profit and managing their risk as BTC’s price now trades at a resistance level of $17,3k.
Should today’s daily candle for BTC close above the daily 9 and 20 EMA lines, then the bearish thesis may be invalidated.
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