Bitcoin (BTC) surged higher after Wall Street opened on June 14 as analysts hoped long-term support was maintained.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Hopes for “relief” from the FOMC meeting

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Data from Cryptooshala Markets Pro and trade view followed BTC/USD as it was trading above $22,500 at the time of writing, hitting a local high of $23,300 on the day.

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The pair experienced a strong rebound after approaching $20,800, with traditional markets also rebounding from the US inflation panic.

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Looking to see where Bitcoin could go next, online analytics resource Material Indicators noted that the market has retraced the 200-day simple moving average (200 MA), an important feature of Bitcoin bear markets that has acted as support throughout previous price cycles.

However, it was “too early to tell” whether the 200 SMA would continue to be an attractive zone, the tweet said, as the Federal Reserve is due to provide inflation signals on June 15.

With the Fed in mind, most cryptocurrency social media commentators do, as expectations have shown that the majority is now in favor of an excessive rate hike of 75 basis points instead of 50.

“Currently, the market gives a 96 percent chance that the Fed will raise 75 bp. 4% chance of appearing)” popular Twitter account @tedtalksmacro wrote in one of a series of tweets for the day.

He added that a rise of 50 points would mean that both stocks and crypto “should go up very strongly” while the volatility was meant to mimic a “sell the rumor, buy the news” event.

“Perhaps they will bring some relief,” says Decentrader co-founder Filbfilb. agreed in my own post.

Time to buy, says green metric for the first time since $3,600.

Meanwhile, there was growing excitement that the on-chain metric reached the “buy” zone for the first time since March 2020.

‘No big deal’ – MicroStrategy CEO plans to hold bitcoin ‘no matter what the odds’

MVRV-Z scorethe expression of how many standard deviations the spot price differs from the realized price returned to negative territory when BTC/USD fell below $23,400.

MVRV-Z has historically bottomed the Bitcoin generation price and thus buying in its green zone has resulted in significant gains.

Earlier this week, Cryptooshala reported on the significance of Bitcoin’s realization price.

Bitcoin MVRV-Z chart. Source: glassnode

The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Every investment and trading step involves risk, you should do your own research when making a decision.