The crypto market is recovering following a recent price correction. At the moment of writing this article, BTC is trading in the green and the king coin is racing towards $40k.
Now, BTC is priced at $38k.
Popular crypto trader Benjamin Cowen just said that Bitcoin’s potential worst-case scenario over the next few months is based on the crypto asset’s 200-week moving average, which currently sits around $19,300.
BTC previously plummeted down to its 200-week moving average during the crashes in December 2018 and March 2020.
The trader notes the March 2020 pandemic-induced crash actually brought Bitcoin all the way down to its 300-week moving average, as the online publication the Daily Hodl notes.
“It only lasted for about one week or so. It basically was a wick, we came back up and then we ultimately went on a year-long rally, which took us from $3,800 to over about $64,000.”
Powell’s Fed meeting
You are probably already aware of the fact that last week, the crypto market was shaken during an abrupt monetary policy u-turn by Jerome Powell during the Fed’s first meeting of 2022.
“Markets tumbled as panic around the unexpected shift from quantitative easing to aggressive quantitative tightening drove the NASDAQ, S&P 500, and Dow Jones to the worst lows since 2020 in cascading price action,” Yahoo notes.
Now, as the article mentioned above notes, all seats are on edge for Fed Chief Powell’s comments today at 2:30 pm EST (7.30 pm UK).
The meeting will clarify “the timeline and ferocity of the planned rate hikes and quantitative tightening package.”
After the ‘extreme fear’-induced sell-off across the board last week, which saw $400bn knocked-off the total crypto market cap, Monday saw a clear ray of hope.
Investors are rallying to scalp their favorite crypto assets in face of mounting indications of overselling. Stay tuned for more news and also make sure to stay safe.