Bitcoin Floats to Weekly Close as Fed Rate Hike Emerges as Next Big BTC Price Trigger

Bitcoin (BTC) ramped up volatility to its weekly close on March 13 as markets braced for geopolitical and macroeconomic signals.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Long-awaited action from the Fed is slated for this week

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it once again moved close to testing the $38,000 support on Sunday.

The pair had seen a quiet end to the week on Wall Street, the weekend proving as calm as the status quo both inside and outside crypto with no surprises.

Now, after Sunday’s close, attention was focused on the US Federal Reserve’s impending rate decision.

On March 16, the magnitude of the assumed rate hike could provide temporary volatility and even a longer-lasting trend change for risky assets, depending on its magnitude.

The situation between Russia and Ukraine also remained a key focus, amid vague signs that negotiators could reach an agreement sooner rather than later.

For monitoring the material indicators from sources, the Bitcoin chart showed the spot price between the 50-week and 100-week moving average (WMA), ahead of the Fed’s decision.

“BTC price continues to fluctuate between 50 and 100 WMA,” it In summary to Twitter followers on the day.

“Expect typical volatility around the weekly close. The market fears Putin and the impending announcement of the FED Funds Rate. Both are catalysts for the results the charts are pointing to.”

Meanwhile Popular Trader and Analyst Crypto Ed described the weekend’s action as “slow” amid an absence of significant support or resistance retests, while fellow analyst Matthew Hyland compared Bitcoin’s behavior to “watching paint dry”.

For equities, however, it was a welcome calm after another week of severe decline.

The Russian stock market remained closed all week and would also see no stock trading until at least March 18.

Major slump “cannot be ruled out,” analyst says

However, after calls for a more substantial BTC/USD retracement, advice came in regarding a possible opportunity to “buy the dip”.

Related: Bitcoin Threatens $38K as Three-Day Chart Hints of Recurrence of COVID-19 Crash in March 2020

Bitcoin’s 200WMA and logarithmic growth curve, at just over $20,000 and $30,000 respectively, could form potential macro support levels should such an event occur, according to trading suite Decentrader.

In its latest market update released Friday, the company argued that the scenario “cannot be ruled out”.

“Such a crash could take Bitcoin to the bottom of the logarithmic growth curve, which continues to climb and is now above $30,000 for the first time. Beyond that is the 200WMA, which is also climbing and now stands at $20,500,” it read.

However, its position in the market would turn bearish in the medium term.