Bitcoin, Ethereum, Dogecoin Tumble Amid Hawkish FOMC Minutes

Major cryptocurrencies traded in the red on Wednesday evening as the Federal Open Market Committee (FOMC) meeting on June 14 unveiled a solid consensus among board members in favor of further interest rate hikes in 2023.

What Happened: Based on economic projections from participants, it is widely agreed that there will be a need for continuous increases in the target federal funds rate throughout 2023.

BTC, after reaching a peak of over $31,000 in mid-June due to several spot bitcoin ETF filings, has shown resilience against potential price catalysts despite the renewed optimism among investors.

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At the time of writing, the global crypto market capitalization stood at $1.19 trillion, a decrease of 1.66% over the last day. 

US stocks experienced a decline on Wednesday as the market returned from a shortened holiday week. The S&P 500 witnessed a 0.2% decrease, while the Nasdaq Composite slipped by 0.18%.

See More: Best Crypto Day Trading Strategies

Analyst Notes: According to crypto analyst Michael Van de Poppe, he suggests keeping an eye on the current area of Bitcoin as Altcoins are undergoing corrections and entering long territories.  “Will see tomorrow and Friday [will be important] unemployment dates.  If you’d want to look for longs, this is the region, otherwise $28.5K,” he said.

Pseudonymous analyst Dave the Wave said Bitcoin’s monthly moving average convergence divergence (MACD) indicator is showing a long-term bullish trend. “If the monthly MACD indicator suggested the top of the market at the end of 2021, which was then confirmed with subsequent price action, at a time when most were still in the throes of uber-bullishness, then doesn’t this then add extra weight or veracity to the metric now suggesting (if not confirming) a recovery in price on its path back toward higher prices?”

For those unfamiliar, the MACD is a popular momentum indicator used by traders to spot potential trend reversals. Dave, relying on past experiences, claims that the MACD has proven to be a reliable indicator for Bitcoin in the past.

Another pseudonymous analyst TechDev said that Bitcoin is on the cusp of a significant surge comparable to historical cycles in 2016 and late 2020. To support his claim, TechDev shares a chart. 

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The chart indicates that BTC has successfully broken through a diagonal resistance, retraced to test a horizontal support level, and now appears poised for an upward momentum – mirroring patterns seen in previous market cycles. “Bitcoin sure looks to be building a macro parabola. Question is whether this one will be steeper like late 2020, or shallower like early 2016,” he said.

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On-chain analytics firm, Santiment, has observed that despite the reduced interest levels, Solana may not be exhibiting the same industry-leading development activity that crypto traders enjoyed in 2021, reflected by the absence of $250+ price levels. However, it is noteworthy that over the past 3 weeks, SOL has experienced a 35% surge.