Bitcoin’s price action in the past few days has been fairly limited but biased towards further gains as the dominant cryptocurrency continues to print higher lows off the March 13 low. BTC is now setting up for a fresh test of the $10,000 level, an area of resistance that has held firm over the last month with Bitcoin unable to close and open above this threshold. A successful break would bring the February 13 high at $10,506 into focus and would see BTC reclaim the bullish trendline off the March 13 low, $10,940 becomes the next target, a level last traded in late August/early September 2019. Support is seen between $9,380 and $9,400.
Monday’s FOMC policy decision confirmed that the Fed will continue to flood the market with US dollars as chair Jerome Powell confirmed that the FOMC is strongly committed to doing whatever we can, ‘for as long as it takes’. The US national debt is now in excess of USD 26 trillion having started 2020 at just over USD 23 trillion, as the government continues to print money to help fight off the economic shock off the COVID-19 virus. Bitcoin however cannot be devalued by excessive money creation as its total supply is capped at 21 million. As long as the Fed continues to print US dollars, the case for Bitcoin as an anti-fiat alternative will strengthen.