A leading crypto analyst said Bitcoin (BTC) and the rest of the digital asset markets rebounded during Federal Reserve Chairman Jerome Powell’s dovish press conference after the Federal Open Market Committee (FOMC).
In the latest edition of his Cryptocademy newsletter, analyst Justin Bennett dives into the charts to predict how long the BTC, Ethereum (ETH), and FTX Token (FTT) rallies will last.
“Bitcoin had an impressive rally today, gaining 7% as of this newsletter. Of course, most of this happened after today’s FOMC.
Now, I know a lot of people are looking to short BTC at resistance, but I think that’s a mistake…my base case was for a continued rally before the next leg lower.
That said, now is not a good time to buy BTC either, as it is trading just below the $23,000 resistance. It will take a daily close above that to expose $24,200.
Instead, I think it’s best to watch a retest of the $22,000 area for a potential long opportunity. As long as this holds, I think BTC looks good for a possible move above $23,000.
If $22,000 fails, expect lower prices like $21,600.
Bennett believes Ethereum is close to confirming its recent selloff was a fake.
“I like Ethereum higher as long as it supports the channel. However, ETH could also grab a big bid if we see a retest of the zone between $1,515 and $1,530.
I think this is a really interesting region to watch over the next few days.
Just keep in mind that the $1,700 region promises to be a massive test for ETH on the upside, so I’d be surprised to see a break above that on the first go.
Looking at FTT’s big post-FOMC move, Bennett warns it could be a fakeout.
“FTT got a whole lot more interesting with a daily close above the late May trend line, which is also the neckline of an inverted head and shoulders.
The FTT had held above this level for about a week until Monday’s close below.
However, as I have mentioned many times, moves like this before a big event like the FOMC can often be fakeouts. This decision by FTT is no exception.
Going forward, I would expect any retest of the $28 zone to encounter significant demand. Likewise, the area just above $30 is resistance.
Finally, Bennett takes a look at the US Dollar Index (DXY), measuring the strength of the dollar against crypto assets. Bennett thinks the DXY could be bullish in the short term for digital assets.
“For now, it looks like the DXY wants to go lower, which should continue to be bullish for near-term risk assets.”
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