Bitcoin (BTC): An Interest Rate Hike In September Might Delay A Trend Reversal

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Bitcoin (BTC): An Interest Rate Hike In September Might Delay A Trend Reversal

Post by howlermunkey » Sun Aug 26, 2018 1:39 pm

Bitcoin (BTC) is about to complete a 69.81% correction just as it did back in October 2014. What remains to be seen now is whether Bitcoin (BTC) will follow the exact same pattern as in 2014 or trade differently. The above monthly chart for BTC/USD shows that even the EMA alignment in both cases is the same. The lower half of the above chart shows a chart for EUR/USD which demonstrates the striking similarities between strength of the EUR/USD pair and Bitcoin (BTC). The price of Bitcoin (BTC) benefited from a weak dollar and dovish FED policies in the beginning, but with Janet Yellen as the new FED chair and a drastic change in FED policies, the price of Bitcoin (BTC) tumbled hard in 2014 as the US Dollar (USD) strengthened. This is demonstrated by a decline in EUR/USD on the above chart, around the same time.

It would not be wrong to say that Bitcoin (BTC) has only danced to the tune of the Greenback (US Dollar) so far and has made little to no moves of its own. During times when the dollar is strong or expected to remain strong, we see a decline in Bitcoin (BTC) prices. Similarly, when the EURO climbs up against the US Dollar, we see a rise in the price of Bitcoin (BTC). Hawkish FED policies during early 2018 seem to have had a greater impact on the price of Bitcoin (BTC) than CME or CBOE Futures. The Federal Reserve pursued an aggressive tightening policy since the beginning of the year and has already raised interest rates twice in 2018. Two more hikes are expected for this year, one in September and another in December. ... -reversal/

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