Decentral Block Post

On Aug. 15, Bitcoin (BTC) price and the wider market corrected while the S&P 500 and DOW looked to build on four-straight weeks of robust gains. Data from TradingView and CNBC show the Dow pushing through its 200-day moving average, a first since April 21 and perhaps a sign for bulls that the market has bottomed. 

While equities markets have been strikingly bullish in the face of high inflation and a steady schedule of interest rate hikes, a number of traders fear that the current 32-day uptrend in the DOW and S&P 500 could be a bear market rally.

This week’s (Aug. 17) release of minutes from the Federal Open Markets Committee (FOMC) should give more context to the Federal Reserve’s current view of the health of the United States economy and perhaps shed light on the size of the next interest rate hike.

For the past month, overly bullish crypto traders on Twitter have also been touting a narrative that emphasizes Bitcoin, Ether (ETH) and altcoins selling off prior to FOMC meetings and then rallying afterward if the set rate aligns with investors' projected figure.

Somehow, this short-term dynamic also contributes to investors’ belief that the Fed will “pivot” away from its monetary policy of interest hikes and quantitative tightening after “inflation peaks.” This may be a somewhat profitable trade for savvy day-traders, but it’s important to note that inflation is currently at 8.5% and the Fed’s target is 2%, which is quite aways to go.

On Aug. 15, Bitcoin (BTC) price and the wider market corrected while the S&P 500 and DOW looked to build on four-straight weeks of robust gains. Data from TradingView and CNBC show the Dow pushing through its 200-day moving average, a first since April 21 and perhaps a sign for bulls that the market has bottomed. 

While equities markets have been strikingly bullish in the face of high inflation and a steady schedule of interest rate hikes, a number of traders fear that the current 32-day uptrend in the DOW and S&P 500 could be a bear market rally.

This week’s (Aug. 17) release of minutes from the Federal Open Markets Committee (FOMC) should give more context to the Federal Reserve’s current view of the health of the United States economy and perhaps shed light on the size of the next interest rate hike.

For the past month, overly bullish crypto traders on Twitter have also been touting a narrative that emphasizes Bitcoin, Ether (ETH) and altcoins selling off prior to FOMC meetings and then rallying afterward if the set rate aligns with investors' projected figure.

Somehow, this short-term dynamic also contributes to investors’ belief that the Fed will “pivot” away from its monetary policy of interest hikes and quantitative tightening after “inflation peaks.” This may be a somewhat profitable trade for savvy day-traders, but it’s important to note that inflation is currently at 8.5% and the Fed’s target is 2%, which is quite aways to go.

Bitcoin (BTC) has been witnessing a tough battle between the bulls and the bears near the $25,000 level. A clear winner may not emerge in the short term due to a lack of a catalyst and because there is no major macro economic data scheduled for this week in the United States. Data points from Asia or Europe may increase volatility, but they are unlikely to start a new directional move.

Anthony Scaramucci, founder and managing partner of Skybridge Capital, in an interview with CNBC, advised investors to ride out the current uncertainty in cryptocurrencies and “stay patient and stay long term.” He expects Bitcoin to reward investors immensely with a sharp uptrend over the next six years.

Along with the focus on Bitcoin, investors are also keeping a close eye on Ether (ETH) ahead of its Merge scheduled for Sept. 15. A whale address that had participated in the genesis ICO but had remained dormant for three years has transferred about 150,000 Ether on Aug. 14. This has led to differing views with some speculating that the whale may dump his holdings after the Merge but others believe that the transfers may have been done to stake the huge quantity of Ether.

Could buying emerge at lower levels and resume the up-move in Bitcoin and the altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bulls tried to resume the up-move in Bitcoin but the bears sold aggressively at $25,211 and pulled the price down to the 20-day exponential moving average ($23,483). This resulted in the formation of an outside-day candlestick pattern on Aug. 15.