Bitcoin’s Future: Will It Soar or Just Hover? 🤔💰

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In the realm of digital currencies, our dear Bitcoin (BTC) appears to be exhibiting a most commendable steadiness, as if it were a well-bred gentleman awaiting the arrival of a most important assembly—the Federal Reserve’s FOMC meeting, scheduled for this Wednesday. With no anticipated reduction in interest rates, one might speculate whether our beloved Bitcoin shall persist in its current languid course. Yet, one cannot help but wonder: is there a grand rally lurking just beyond the horizon? 🧐

Rates to remain as they are

Should one take the pulse of the U.S. stock market as a harbinger of what is to transpire at the FOMC meeting, it seems we are destined for a rather unremarkable outcome. Unless, of course, the esteemed Fed Chairman Powell decides to engage in a bit of market theatrics during his post-meeting address. 🎭

According to the ever-reliable CME Fedwatch Tool, the market is a staggering 99% convinced that no rate cuts shall be forthcoming. This revelation may indeed cause a frown upon the visage of the Trump administration, for our President has made his desires for a weaker dollar quite clear. Nevertheless, it appears that Mr. Powell remains the master of ceremonies, and until the economy shows signs of weakness, we are likely to remain in our current state of affairs.

S&P 500: Continued rally or rejection?

On a rather cheerful note, the S&P 500 has continued its upward bounce, closing in the green on Monday. However, the formidable $5,670 level has proven to be a most obstinate barrier, as the price flirted with it before retreating to a more modest position by day’s end. 😅

To maintain the upward trend, it is imperative that the price not only breaks above this level but also transforms it into a supportive cushion. The events of this week, particularly following the FOMC meeting, shall be pivotal in determining whether the stock market shall regain its momentum or if the S&P 500 shall descend to the next significant support level at $5,400.

Bitcoin’s inverse head and shoulders confirmation?

And what of our dear Bitcoin? As it stands, the price has maintained a rather stable demeanor over the weekend and into the early days of this week. An inverse head and shoulders pattern remains in play, and the price has bravely ventured beyond the neckline, only to return for a retest. Should this pattern indeed come to fruition, we might see the price escape the descending wedge to a lofty $94,600. Just above $95,000 lies the peak of the last swing high, where formidable resistance awaits. 🏔️

Weekly time frame turns bullish for $BTC

On the grander stage of the weekly time frame, the beginnings of a potential major rally are becoming increasingly evident. A new support level appears to have been established at $80,000, suggesting that the price may have found a bottom here. 📉

The first indicator below the main chart is the Stochastic RSI, which reveals that the indicator lines have crossed, with the blue line triumphantly above the orange. Should these lines continue their ascent and breach the 20.00 level, we may be on the cusp of significant upward momentum. 🚀

Below this, we find the Relative Strength Index, which indicates that the line is bouncing from the robust 44.00 level, a point that has historically served as both support and resistance for Bitcoin. The indicators are beginning to exhibit a positive disposition, and the price may be on the verge of a reaction. A vigorous rally may not be far off, but let us not forget that Bitcoin’s fate is intertwined with that of the stock market. The S&P 500 must be observed with the utmost diligence. 👀

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2025-03-18 13:10