As a refresher, the Federal Reserve had chosen to hike its benchmark rate by 50 basis points this Wednesday, unleashing a torrid cross-asset rally as investors breathed a sigh of relief on avoiding a 75-bps hike.
As is evident, the cryptocurrency’s price is currently perched at the cusp of a major support zone.
If these support zones hold, Bitcoin can continue its consolidation pattern, building ammunition for an eventual upthrust.
For instance, on the 05th of May, Bitcoin experienced the highest liquidation of long positions since the 07th of February.
This observation is supported by the fact that Bitcoin balances held on exchanges have decisively increased in recent days.
Moving to on-chain metrics, a reading of Bitcoin’s active address sentiment indicates that a bounce is now in order.
However, due to the prevailing high-correlation regime between Bitcoin and US equities, a retest of the $29,000 price zone followed by a subsequent sizable rally remains a viable possibility.