Market Overview
The global financial landscape has shifted significantly since the Federal Reserve began raising interest rates nearly a year ago to combat inflation. Investors are now closely watching for signals about when the central bank might pause its tightening cycle. Recent events, including the collapse of Silicon Valley Bank and subsequent market volatility, have added new complexity to the Fed's upcoming policy meeting, where officials must balance financial stability against persistent inflationary pressures.
For cryptocurrency investors, these dual concerns have suddenly become paramount. Market expectations have dramatically shifted from a potential 50-basis-point hike to what now appears to be a near-certain 25-point increase. The focus has turned to whether the Fed will hike rates in March at all, creating short-term bullish momentum — though significant risks remain that could trigger pullbacks after any upward moves.
Bitcoin (BTC) Analysis and Trading Strategies (March 17)
Technical Outlook:
- Yesterday's daily candle closed bullish as anticipated, with price finding support at the 5-day moving average after a single bearish correction candle.
- The current focus is on whether BTC can extend gains to retest the upper wick of recent candles, signaling continuation potential.
- Caution: Market conditions remain volatile, requiring close monitoring for potential trend reversals.
Contract Trading Strategy:
Long Position
- Entry: ~26,230
- Stop-loss: 25,850
- Targets: 26,800–27,200
Short Position
- Entry: 27,200 (if rejected)
- Stop-loss: 27,500
- Targets: 26,720–26,350
Ethereum (ETH) Analysis and Trading Strategies (March 17)
Technical Outlook:
- ETH continues to benefit from favorable market sentiment, rallying above 1,720 today.
- Key question: Can ETH establish new highs, or will it face corrective pressure after the current bullish phase?
Reversal signals would require either:
- Multiple tests of prior highs
- A false breakout followed by a neckline breakdown
Contract Trading Strategy:
Long Position
- Entry: ~1,720
- Stop-loss: 1,700
- Targets: 1,765–1,792
Short Position
- Entry: 1,792 (if rejected)
- Stop-loss: 1,815
- Targets: 1,750–1,735
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Risk Management Principles
- Markets (BTC, ETH, etc.) follow logical patterns — emotional trading is the primary adversary.
- Always trade with predefined plans for both entries and exits.
- Daily market insights are available through our exclusive analyst network.
FAQ Section
Q: Why is the Fed's decision so crucial for crypto markets?
A: Interest rate changes directly impact liquidity conditions and risk appetite, which are key drivers of cryptocurrency valuations.
Q: How reliable are these support/resistance levels?
A: While technical levels provide guidance, always combine them with volume analysis and broader market context for higher-probability trades.
Q: What's the biggest mistake crypto traders make?
A: Overtrading during volatility and abandoning stop-loss discipline — sticking to your plan is critical.
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Analysis provided by FX168 Financial. All content is for educational purposes only and does not constitute investment advice.