Bitcoin (BTC) started to climb higher following the Wall Street opening on June 14 amid hopes that it had managed to maintain long-term support.
Optimism for Relief from FOMC Meeting
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was trading above $22,500 at the time of this report, reaching local highs of $23,300 on the same day.
Following a strong rebound from nearly $20,800, Bitcoin, as well as traditional markets, were recovering from concerns over inflation in the United States.
Looking ahead, on-chain analytics platform Material Indicators observed that the market had reclaimed the 200-day simple moving average (200 SMA), a significant indicator of Bitcoin bear markets that had previously acted as a support level in past price cycles.
However, it was noted that it was too soon to predict if the 200 SMA would continue to be a favorable zone, especially with the Federal Reserve scheduled to provide insights into inflation on June 15.
#BTC just reclaimed the 200 Week MA. Some decent bid liquidity seen on #FireCharts, but too early to tell if it will hold. Expect all eyes to be on the #FOMC conference Wednesday. pic.twitter.com/OEV18iTSrD
— Material Indicators (@MI_Algos) June 14, 2022
In anticipation of the Federal Reserve’s announcements, most crypto social media commentators expected a larger rate hike of 75 basis points as opposed to 50.
Tomorrow’s FOMC expectations are weighted heavily towards extreme 150-175 bps rate hikes pic.twitter.com/l5EW64mnvP
— CRYPTO₿IRB (@crypto_birb) June 14, 2022
Popular Twitter account @tedtalksmacro mentioned that the market was pricing in a 96% probability of a 75bps hike, shifting from a previously anticipated 50bps hike due to last week’s high inflation data change.
Additionally, market observer Filbfilb of Decentrader shared a similar sentiment mentioning a potential relief provided by the rate hike.
Buying Opportunity Emerges with Positive Metric
Furthermore, there was excitement over an on-chain metric entering the “buy” zone for the first time since March 2020.
The MVRV-Z score, which indicates how far the spot price deviates from the realized price, turned negative as BTC/USD dropped below $23,400.
Historically, MVRV-Z has signaled Bitcoin price bottoms, and purchasing in its green zone has resulted in significant gains.
Earlier in the week, Cointelegraph highlighted the importance of Bitcoin’s realized price.
The opinions expressed in this article are those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment decisions involve risk, and it is recommended to conduct thorough research before making any decisions.
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