BTC Illiquid Supply Shock Ratio Goes Parabolic; Eth2 to Arrive Soon

Chart of the Day

On Friday, the broader market resumed its sideway movements after the FOMC meeting concluded with a dovish 25 basis-point rate hike. The U.S. Federal Reserve's decision to cap the rate hikes to nine instances over the next two years is a much milder one than what many investors have been expecting, and capital is flowing back into the U.S. equity markets as a result of that. In turn, it may be possible that said capital inflow will cascade into the crypto market in the near future. For the time being, however, BTC's trading channel seems to have narrowed even further to range between the $38k to $42k levels. As of the time of writing, the largest cryptocurrency by market cap is consolidating above the $40k level, and is building up some pressure to initiate a possible breakout beyond multiple resistance levels near the $41k to $41.5k range. A clear breakout beyond these levels will open BTC up to more upside gains, while downside correction could extend to revisit the $39k support.