Bitcoin (BTC) experienced a 2% rebound on April 4 as the United States Federal Reserve provided encouraging signals, leading to a rally in risk assets.
BTC/USD 1-hour chart
Bitcoin’s price reached a high of $67,510 on Bitstamp during the Wall Street open, following the upward trend of U.S. stock indices. Meanwhile, gold cooled down after reaching new all-time highs above $2,300.
The previous day, Fed Chair Jerome Powell expressed a dovish stance on economic policy, suggesting that interest rate cuts, which are beneficial for risk assets, would occur before the end of 2024. Powell made this statement during a speech at the Stanford Business, Government, and Society Forum at the Stanford Graduate School of Business in Stanford, California. He referred to the upcoming Federal Open Market Committee (FOMC) meetings, with the next one scheduled for May.
However, the latest data from CME Group’s FedWatch Tool indicates that the probability of a minimal 0.25% rate cut at either the May or June meeting is at best 61%.
In addition, the latest initial U.S. jobless claims came in slightly above expectations, with 221,000 claims compared to the expected 214,000. This provided further upward momentum for market movement.
Analyzing the current market structure of Bitcoin, trader Pierre pointed out that the 200-period exponential moving average (EMA) on 4-hour timeframes was providing support.
On the daily chart, another trader, Jelle, found promising signals that suggest a continuation of upside movement. Bitcoin’s relative strength index (RSI) crossed back above the key 50 point at the daily close. This is significant because the daily RSI had been hovering around its lowest levels in several months.
Jelle shared this observation with followers on X (formerly Twitter), stating that “Bitcoin has locked in a hidden bullish divergence on the daily chart!”
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.