- Cryptocurrencies have been in a consolidation phase in the past few days.
- Bitcoin has formed a bullish flag pattern on the four-hour and daily charts.
- The Federal Reserve has likely ended its interest rate hikes.
Cryptocurrency prices have moved sideways in the past few seven days. Bitcoin has remained stuck at $35,000 while Ethereum, BNB Coin, and Cardano were trading at $1,880, $245, and $0.3345. Still, there are four main catalysts that could push BTC and other altcoins like MultiversX (EGLD), Neo, and IOTA much higher in the coming months.
Bitcoin bullish flag pattern
The first main catalyst for Bitcoin and other altcoins is that the BTC price has formed a bullish flag pattern. This pattern is characterized by a long flag pole and a rectangle chart pattern. BTC is also above the 50-period and 25-period moving averages.
Therefore, there is a likelihood that the coin will have a bullish breakout in the coming weeks. This view will be confirmed if the price moves above the year-to-date high of $36,000. If it happens, it will likely rise as buyers target the next psychological level at $40,000 followed by the 50% Fibonacci Retracement point at $42,000.
Federal Reserve is likely done
The other key catalyst for Bitcoin and other altcoins is the Federal Reserve. On Wednesday, the bank decided to leave interest rates unchanged between 5.25% and 5.50%, the highest point in more than two decades.
In the accompanying statement and dot plot, the bank pointed to another 0.25% rate hike. However, in the press conference, Jerome Powell said that the bank will be data-dependent going forward.
Economic data has been quite positive. For example, on Friday, data showed that the Non-Farm Payrolls (NFP) dropped to 150k in October while the unemployment rate rose to 3.9%. Also, US manufacturing and services PMIs came below expectations.
Also, the price of crude oil has dropped back to $80 per barrel, which is a good thing for inflation. Therefore, there is a likelihood that the Fed will pause rate hikes and then resume rate cuts in 2023.
Bitcoin spot ETF approval
The other key news that could move Bitcoin, EGLD, IOTA, and NEO is the spot Bitcoin ETF approval. The Securities and Exchange Commission (SEC) is considering ETFs by companies like Blackrock, Invesco, and Ark Invest. It was also forced by a court to review Grayscale’s conversion of its GBTC into a spot Bitcoin ETF.
Therefore, there is a likelihood that the agency will finally approve these ETFs. If this happens, it will lead to more BTC gains as companies buy Bitcoin to fund their ETFs. Bitcoin is getting quite rare by the day.
Still, there is a small risk that the SEC will reject these ETFs again. If this happens, we will likely see a brief Bitcoin price pullback.
Bitcoin halving ahead
The other big catalyst for cryptocurrencies is the upcoming Bitcoin halving, which is scheduled for April next year. This halving will reduce the amount of Bitcoins that exchanges mine. It will also reduce the pace of Bitcoin production.
Historically, Bitcoin rises ahead of a halving event. And when this happens, other coins like Litecoin, Bitcoin Cash, and Stacks also rise.
