By David Pichodo
Investing.com - After dropping towards $37,500 on Sunday night, Bitcoin rebounded yesterday, peaking within a few dollars of the psychological threshold of $40,000, but that threshold still stands as a solid barrier for now as the cryptocurrency is back below $39,000 at the time of writing.
Recall that the crypto market had been rocked on Sunday by reports that a crypto text that was voted on in the European Parliament yesterday could lead to a ban on proof-of-work cryptos, including Bitcoin.
But in the end, a watered-down version of the text that does not restrict the most energy-intensive crypto-currencies was adopted, largely relieving the crypto market.
However, it has to be said that this was not enough to significantly improve the technical profile of Bitcoin. Indeed, yesterday's rally mostly confirmed the strength of the $40,000 resistance, which attracted sellers once again last night.
In the end, the daily chart still depicts an unclear trend, and the situation will only become clearer if the $45,000 area is breached, or if the $35,000 area is broken.
As for the next potentially influential events for bitcoin, attention should quickly turn to tomorrow night's Fed meeting, for which a rate hike is widely anticipated, although the situation in Ukraine has changed things somewhat since the last FOMC meeting.
To properly anticipate the reaction of Bitcoin, and crypto-currencies in general, we should remember that a more hawkish Fed than expected would be a bearish factor, and vice versa. In the meantime, the most likely outcome is that the overall trend of BTC/USD remains uncertain in the short term.