Interest Rate Hikes Will Strengthen the USD And thus Weaken Bitcoin (BTC)

BTC Oscillation Range:  BTC price appears to be consolidating below $44,000 and analysts are highlighting $48,000 as the next short-term BTC target.

Investor sentiment in the cryptocurrency ecosystem has changed significantly over the past week in a positive direction despite events around the world. Bitcoin (BTC) is now above $43,500 and many altcoins are also recording double-digit gains.

The price of BTC has oscillated between $43,350 and $45,400 as the world awaits some form of resolution to the current conflicts.

Several Analysts Have Their Own Say About the Recent Price Action For BTC – Bitcoin Accumulation has Started

The sideways price action for Bitcoin has been largely influenced by the fact that the top cryptocurrency “has entered a volume gap” according to crypto analyst and pseudonymous Twitter user.

The Analyst further stated, “Volume Gaps tend to get filled entirely. Major Volume Gap resistance lies ahead at the ~$48,000 region, which happens to be the mid-range area of the macro range.”

Evidence that the price is likely to head higher is accumulating and several analysts agree that “BTC accumulation phase” has begun.

Interestingly, several new users are deciding to hold and they are transiting to become long-term holders.

Further, it has been clarified that the chances of reaching the previous low ($28,000) are very low as the rookies are waiting for another rookie in the next cycle.

Next Major Catalyst

The rapid progression of the price stopped at $44,000, which coincided with the 100-day moving average. Further, Bitcoin is close to the upper end of the $33,000-$45,000 range, which has traded over the past few weeks.

Analysts look at $45,000 resistance as holding firm for now and the “next hurdle” or resistance is expected at $51,000 which still stands in the way before BTC can even attempt to make a run at its all-time high above $64,000.

When thinking about what comes next for BTC in the short term, analysts have to state that “BTC may go down a bit toward the middle of its $33,000–$45,000 range and it has been further stated that it’s difficult to see BTC breaking above $45,000 and then $51,000 without any significant catalyst. There needs to be some new reason for the price to work past 48,000 in a sustainable manner.

Analysts are looking at the FOMC meeting on March 16th which will tell whether the Fed will raise rates or not. Technically, it will be interesting to see how BTC will react if the Fed raises rates in two weeks as interest rate hikes “strengthen” the USD and thus “weaken” BTC in the BTC/USD pair, but the impact on BTC may not be drastic “.

Looking forward.