Image Source: Pexels
 

Bitcoin futures are still fighting to get back above the 27415 level today. Following a dip lower towards 24930 support earlier in the week, the market has since rebounded and is now testing the upper level once again. Near-term, the key driver for Bitcoin remains the market's expectations regarding the Fed. With the Fed now widely expected to keep rates on hold this month, a shift from the earlier expected hike, the crypto market looks poise for fresh gains. However, the expected rally is highly contingent on USD trading lower.
 

Fed in Focus

The issue currently, is that the Fed looks to be leaning towards a ‘hawkish pause’. Simply put, instead of simply ending its tightening campaign, the Fed is hinting that a June pause might pave the way for further tightening in the coming months. Friday’s US jobs number showed that the economy is still adding jobs at a firm pace and as such, many players still see further hikes this year. If this message is confirmed by the Fed, Bitcoin might come under some near-term pressure. Alternatively, if the Fed holds rates unchanged but focuses less on the likelihood of further hikes this year, Bitcoin and other crypto assets are likely to rally near-term.
 

Technical Views

BTC

(Click on image to enlarge)

The move lower in BTC over recent months can be viewed as a corrective bull flag pattern. While support at 24930 holds, the focus is on an eventual breakout above the 27415 level and bear channel top, opening the way for a move higher towards 32185 near-term. 

More By This Author:

Inflation Still Too High In The Eurozone
Further Fed ‘Rate Pause’ Comments
Inflation Falls Sharply