Bitcoin Tops $27K a Week After Death Cross Formation With Fed Likely to Extend Rate Pause

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Bitcoin Tops $27K a Week After Death Cross Formation With Fed Likely to Extend Rate Pause
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The cryptocurrency is up nearly 8% since the ominous-sounding technical analysis pattern appeared on the daily price chart.

The rally comes as traders see the Fed holding rates steady through the rest of the year.

The leading cryptocurrency by market value jumped to $27,220, the highest since Aug. 31, having climbed almost 8% since the ominous-sounding death cross pattern appeared on its daily price chart a week ago. The advance since that bearish crossover of the 50-day simple moving average below the 200-day moving averageThe bounce comes as Fed funds futures indicate a 99% probability the U.S. central bank will leave rates unchanged between 5.25% and 5.5% this Wednesday.

The Fed will deliver a policy decision on Wednesday at 14:00 ET accompanied by a statement and full forecast update in the Summary of Economic Projections, including a new"dot plot" of interest-rate estimates. Powell will follow with a press conference thirty minutes later. "The FOMC is likely fully aware of the fact that there have been three prior inflation soft patches during the pandemic that were subsequently followed by a reacceleration of inflationary pressures," Scotiabank wrote, referring to the"Another reason is to manage markets because the minute the FOMC signals conviction that hikes are definitely done is when traders with their itchy fingers pounce on the front-end and start pricing amplified easing bets.

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