Bitcoin Cash price remains calm ahead of Fed decision
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The Bitcoin Cash price has remained in a consolidation phase for the past few weeks.
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That’s still well below the year’s high of $153.
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The Fed is expected to raise interest rates by 0.25% and point to a strategic pause.
Bitcoin Cash Price has moved sideways in May as recent bullish momentum waned. The BCH coin was trading at $120, where it has been for the past few days. This price is below this year’s high of $152.
Fed interest rate decision
The BCH price continued to consolidate as investors awaited the upcoming interest rate decision from the Federal Reserve. This will be an important decision due to the current state of the US economy.
While unemployment is at a 50-year low, inflation remains stubbornly high while industrial output has fallen for months in a row. Similarly, data published last week showed that the economic slowdown continued in Q1.
The other risk is that the commercial real estate industry is on the brink of collapse as interest rates rise and maturities approach. Furthermore, due to hybrid work and redundancies by white-collar workers, many houses have high vacancy rates.
Therefore, there is a possibility that the Federal Reserve will have a balancing act in its decision later today. Analysts believe the bank will raise interest rates by 0.25% and then hint at a strategic pause. In a note to Coindesk, an analyst said:
“As the market expects a pause after this hike, we would look for the phrase ‘further policy tightening may be appropriate’ to be removed from the statement, replaced by more open-ended language that leaves the door open to either more rate hikes or a pause.”
A dovish tone will be positive for Bitcoin Cash and other cryptocurrencies such as Bitcoin, Cardano and Solana. Historically, these coins tend to do well when the Fed has abandoned its hawkish tone.
The other catalyst for Bitcoin Cash is the performance of regional bank stocks on Wednesday. With companies like Western Alliance and PacWest continuing to crash, it could motivate more people to buy cryptocurrencies like BCH.
Bitcoin Cash Price Prediction
Is it safe to invest in Bitcoin Cash? The daily chart shows that the BCH price has been in a tight range for the past few weeks. It is consolidated with the 25-day and 50-day moving averages. The Awesome Oscillator has moved below the neutral point while the price is below the key resistance point at $153. The volume remains low.
Therefore, the next price action of Bitcoin Cash will depend on the performance of regional bank stocks and the outcome of the Fed decision. The next important support and resistance levels to watch will be at $110 and $125.
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