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08/20 14:50
BTC Explodes Higher After Federal Reserve Intervention (August 2026)
$XRP spikes 20% in less than 2 days
Source: TradingView
To give an idea of how the Fed intervention on Wednesday impacted some of the leading lights in the crypto market, a short term chart of Ripple ($XRP) shows the prolific breakout of this altcoin. From a standing start, the $XRP price spiked up 20% in less than two days.
$BTC rallies 12%
Source: TradingView
Given its far bigger market capitalization, the $BTC price did not spike as much as $XRP since the Fed intervention, it did however rally 12% over the same period, and as can be seen in the 4-hour chart above, this is a tremendous breakout which has continued to increase into Thursday.
Once the $BTC price had moved past the convergence point of the bear and bull market trendlines, it was always only going to be a matter of time before a more dynamic move materialised. A breakout was already happening even before the Fed started to buy bonds, and this just served to add fuel to the fire.
Inverse head and shoulders bottoming pattern completes
Source: TradingView
The daily chart puts into perspective the barriers that this $BTC price rally has overcome so far. First was the no little matter of the $65,600 horizontal resistance level. This particular level had acted as resistance throughout the entire bear market bottoming process, with just two quick forays by the bulls to try and surpass it, which were both rejected within 2 or 3 days.
An inverse head and shoulders pattern was also in process for the whole bottoming. The right shoulder was possibly irritating some, as it meandered sideways for what seemed ages before yesterday’s spike up in price completed the pattern. $76K is the measured move out of the pattern, so there is still another $4,000 or so to go in order to bring the move to completion.
The daily chart is starting to look quite overbought, and this is even more in evidence in the shorter time frames. Could the $BTC price reach up and tag the $73,750 horizontal resistance level before the bulls stop to catch their breath? The price could go even higher than this, but a correction is becoming due at some point. A corrective move back to at least $70K in order to confirm this level as new support could quite possibly take place in the next day or so.
Towering green candle - prophesy of a new bull market?
Source: TradingView
One should really feast one’s eyes on the towering green candle that looks to have taken off at exactly the right time, as the $BTC price cleared the junction of the bull and bear market trendlines. If technical analysis was a precise art, this would be the perfect moment to expect such an explosive rally.
So has the $BTC price entered a new bull market? Quite possibly. Three more tick boxes remain to be completed. Firstly, the horizontal resistance at $73,750 needs to be overcome. Then it would be on and up to the last macro high at $83K. This level is probably key, although the official confirmation of a new bull market would come with a higher high beyond $98K.
The indicators at the bottom of the chart are extremely positive for this new bull market thesis to play out. The Stochastic RSI indicator lines are about to both cross the mid-point of their journey back to their top limit, while in the RSI the indicator line has broken out above a downward trendline that stretches back weeks before the last bull market top - an incredibly favourable signal.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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