The Bitcoin price has experienced a swift recovery along with the U.S. stock market after the Federal Reserve made an announcement about buying individual corporate bonds (on top of ETFs).
The price of the top cryptocurrency surged to an intraday high of $9,459 on the news on the Bitstamp exchange in minutes.
Jerome Powell saves the day
June 15 promised to be another spectacular day for the bears. After an unconvincing comeback on Friday, the bulls were in for another sell-off that could match the scope of the Thursday sell-off.
The Dow futures shed more than 900 points on Sunday, which meant that another four-digit loss could be possible for the benchmark equities market indicator.
Bitcoin traders didn’t hesitate to take a cue from stock traders, pushing the price of the flagship cryptocurrency to $8,900, its lowest level since May, earlier today.
However, the Fed’s determination to support the market with its revised bond purchase program was enough for a huge market turnaround.
The Dow is currently up 165 points while other major averages are also in the green.
The bulls have to work harder
At press time, the Bitcoin price has seemingly gained footing above the $9,400 level, but Josh Rager believes that the bulls have to put in more work.
The trader is convinced that the top cryptocurrency has to reclaim $9,500 in order to maintain a ‘bullish perspective.’
Otherwise, the Fed-driven price pop will most likely end up being a head-fake move that will be followed by more downside.