Bitcoin (BTC) Back to $41,000, Here’s Why Retail Investors Should NOT Buy Yet

Only a day earlier than the Federal Reserve plans to announce its first charge hike in 4 years, Bitcoin (BTC) makes a stunning transfer to the north. As of press time, Bitcoin is buying and selling 5% up above $41,000. That is for the third time in three weeks that Bitcoin has made a transfer again above $40,000.

Nonetheless, retail traders ought to nonetheless maintain the weapons and never fall for this renewed optimism. With right this moment’s transfer, BTC makes a bounce over its 20-day EMA and 50-day transferring common. However make no mistake, the world’s largest crypto remains to be distant from its 200-day transferring common (DMA) of $48,622. Provided that Bitcoin crosses these ranges, we will verify some indicators of the uptrend.

#bitcoin doing stuff pic.twitter.com/tEf25XtoQj

— Lark Davis (@TheCryptoLark) March 16, 2022

The present international macroeconomic state of affairs appears to be fairly fragile with the U.S. inflation numbers touching a four-decade excessive. Alternatively, the geopolitical uncertainty with the Russia-Ukraine battle has added to the woes. A Twitter deal with operated by Glassnode co-founders explains:

Liquidation sizes lower as Bitcoin is squeezed into the $38-$42k worth vary (B). Lengthy liquidations proceed to dominate. The following massive transfer is confirmed as soon as we break the $36-$45k vary (A).

Mike Novogratz: Don’t Count on Bitcoin to Rally ‘Aggressively’

Billionaire crypto investor and the founding father of Galaxy Digital Mike Novogratz mentioned that there are only a few possibilities for Bitcoin to rally ‘aggressively’ realizing that the Fed is planning to charge rates of interest and go forward with sturdy quantitative tightening measures.

The Fed is reportedly planning for 4 minimal charge hikes this 12 months which may go as excessive as 7-8 hikes in case the inflation doesn’t come underneath management rapidly. Novogratz expects Bitcoin to remain within the $30,000 to $50,000 vary this 12 months. He additional added:

“I don’t assume Bitcoin can rally aggressively till we get a pause. Bitcoin is a story story, it’s bringing individuals into the neighborhood. It’s laborious to usher in new individuals when their home is on fireplace.”

Novogratz additionally mentioned that the New York State must do away with BitLicense which is making it extraordinarily troublesome for different crypto companies to do enterprise within the area.