Schlagwort: crypto business

• Bitcoin Cash price has remained in a consolidation phase in the past few weeks.

• It remains significantly below the year-to-date high of $153.

• The Fed is expected to hike interest rates by 0.25% and point to a strategic pause. 

Bitcoin Cash price has moved sideways in May as the recent bullish momentum faded. The BCH coin was trading at $120, where it has been in the past few days. This price is below the year-to-date high of $152. 

Fed interest rate decision

BCH price continued consolidating as investors waited for the upcoming interest rate decision by the Federal Reserve. This will be an important decision because of the current state of the American economy. 

While the unemployment rate sits at a 50-year low, inflation remains stubbornly high while the manufacturing output has contracted for several straight months. 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 verge of collapse as interest rates rise and maturities near. Further, because of hybrid work and white-collar layoffs, 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 that the bank will hike rates by 0.25% and then hint of a strategic pause. In a note, an analyst told Coindesk:

“As the market is expecting a pause after this hike, we’ll be looking for the sentence on ‘additional policy firming may be appropriate’ to be removed from the statement, replaced by more open-ended language leaving the door open for either more rate hikes or a pause.”

A dovish tone will be positive for Bitcoin Cash and other cryptocurrencies like 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. Of companies like Western Alliance and PacWest continue crashing, it could incentivize 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 in the past few weeks. It is consolidating at 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. 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 key support and resistance levels to watch will be at $110 and $125.

How to buy Bitcoin Cash

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The post Bitcoin Cash price remains calm ahead of the Fed decision appeared first on CoinJournal.

• Bitcoin finds resistance at $30k
• The neckline of a head and shoulders pattern provides support
• The realized HODL ratio suggests investors may buy the dip

The main event of the trading day is the Federal Reserve meeting. Most market participants expect the Fed to hike the interest rate by another 25bp, but the key would be how it communicates its decision. 

A dovish rhetoric should be bearish for the US dollar and bullish for Bitcoin, whereas a hawkish one would weigh on Bitcoin as the dollar would rally. 

Ahead of the Fed’s decision, Bitcoin struggles at $30k. It found it difficult to overcome horizontal resistance, and it formed a possible head and shoulders pattern. 

While incomplete, it may lead to further weakness should the price drop below the pattern’s neckline. In such a case, buyers are likely to emerge in the $24k area, where previous resistance may provide support. 

Bitcoin chart by TradingView

The realized HODL ratio for Bitcoin favors buying future dips

Also called the RHODL ratio, it has a simple interpretation. The market was overheating whenever the ratio reached the red band, meaning that the bullish cycle was ending. 

Conversely, the bearish market ends whenever it reaches the green band and a bullish cycle should start. Bitcoin rallied at the beginning of 2023 as the RHODL ratio indicated the end of the bearish market. 

Hence, any dip as a result of today’s Federal Reserve decision should be bought as RHODL has a lot of room until reaching the red area.

The post Bitcoin price forecast ahead of the Federal Reserve meeting appeared first on CoinJournal.

• The Federal Reserve will conclude its two-day meeting on Wednesday.

• It comes as the US economy faces significant risks, including the collapse of regional banks.

• These events could be good catalysts for AltSignals (ASI).

The American economy is facing significant headwinds, which are helping Cryptocurrency prices are holding quite well as investors continue worrying about the American economy. As a result, Bitcoin has emerged as a safe haven as it sits close to its year-to-date high. Other coins like Ethereum, Litecoin, and Jasmy have done well. Similarly, investors are investing in token sales like AltSignals (ASI) in their hunt for the next big thing.

Risks to the American economy

The American economy is facing significant risks as it adjusts to the new normal of high-interest rates. Most of these challenges are all interrelated. The biggest risk to the economy is the banking sector, which has come under intense strain recently. On Monday, the FDIC seized First Republic Bank and then sold it to JP Morgan, the biggest bank in the country.

There are concerns that more banks could collapse in the coming months. On Tuesday, PacWest stock price plunged by more than 30%, meaning that it has fallen by over 70% in the past two months. Western Alliance and M&T Bank have all retreated. This is a sign that investors expect the banks to collapse soon.

The other risk is on the commercial real estate industry that is on the verge of collapse. The industry is dealing with high-interest rates, low occupancy rates, and upcoming debt maturities. Some of the worst-affected cities are San Francisco and New York. A collapse of these companies could also have an impact on the banking sector.

Meanwhile, there is also risk to a credit default in the US as Democrats and Republicans differ on raising the debt ceiling. In a warning this week, Janet Yellen said that the US government could run out of money on June 1. The US is also facing significant inflation risks.

Cryptocurrencies as a safe haven

Therefore, these challenges are good for cryptocurrencies for two main reasons. First, investors believe that Bitcoin is a safe haven, which is equivalent to a digital gold. This explains why Bitcoin has outperformed the Nasdaq 100 and S&P 500 indices this year. eGold has also done well as it sits closer to its all-time high. 

Second, these risks means that the Federal Reserve will likely go slow in its hiking path. Analysts expect that the Fed will start pivoting as soon as on Wednesday of this week. This pivot could mean pausing on rate hikes or delivering a rate hike and pointing to a pause. This pivot will be a positive thing for Bitcoin. Bitcoin tends to have a positive correlation with other altcoins like Ethereum and Solana. 

If this works out well, it means that Bitcoin could continue rising in the coming months. In a recent note, analysts at Bloomberg Intelligence and Standard Chartered said that Bitcoin could jump to over $100k in the next few months. A Standard Chartered analyst wrote:

“Against this backdrop, bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance. While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly.”

Implications for AltSignals

The implications of these Bitcoin bullish calls are positive for AltSignals (ASI) and other altcoins. For starters, AltSignals is a profitable company that provides signals to traders from around the world. Presently, the platform uses manual approaches like indicators to provide these trading signals. 

As part of their growth strategy, the developers hope to use both blockchain and artificial intelligence to provide the services. The blockchain section will be powered by the ASI token, which will be used for payments and governance.,

The AltSignals token sale has done well in the past few months. Developers have already raised $676k from investors in the first stage of the sale. One ASI is selling for about $0.015 and the amount is expected to jump in the second stage of the token sale.

Historically, cryptocurrencies tend to rally when Bitcoin is soaring. We have seen that in all the past bullish cycles. This also explains why meme coins like Pepe have soared recently, as we wrote here. ASI is better than Pepe since it has utility in that it is powering a profitable platform.

Is AltSignals a good investment?

I believe that investing in AltSignals presale is a good thing because of the utility that surrounds the platform. Also, I believe that we are in the early stages of a major bull run in the crypto industry as risks to the American economy remain and as the Fed starts pivoting.

However, there are always risks when investing in presales and in the crypto industry. Therefore, you should only allocate what you can afford to lose.    You can buy the AltSignals token here.

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