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(Kitco News) – Crypto prices rose on Wednesday after the release of the minutes of the last meeting of the Federal Open Market Committee (FOMC) showed that the Fed was seriously considering slowing the pace of its interest rate hikes.

Traditional markets also benefited from the reported slowdown, with prices for major indexes closing higher on the last full trading day of the US holiday week. At the closing bell, the S&P, Dow and Nasdaq ended up 0.59%, 0.28% and 0.99%, respectively.

Data from TradingView shows that Bitcoin (BTC) the bulls staged a rally in the early hours of Wednesday and managed to push it to a high of $16,682 before settling into consolidation mode around support at $16,500.

BTC/USD 4 hour chart. Source: Trading View

Kitco senior technical analyst Jim Wyckoff noted the early morning rally for BTC, suggesting enterprising traders were “looking for bargains after prices fell to a two-year low on Monday.”

But bulls shouldn’t be happy just yet, Wyckoff warned, as “the bears still have the overall short-term technical advantage, which means the path of least resistance for price is falling to short term”.

Current events cause decoupling

The events of 2022, including the ongoing FTX implosion, have weighed heavily on BTC and the broader crypto market. According to Mikkel Morch, Chairman of ARK36, the FTX scandal led Bitcoin to adopt an “uncorrelated relationship with other risky assets (Nasdaq, S&P 500, etc.) and correlated with the USD”.

If the FTX crash hadn’t happened, “Bitcoin would have gone up with the indices over the past two days,” Morch said.

From there, Morch suggested that “Bitcoin appears to be creating a double bottom” on the daily chart, which is an uptrend. But the chief executive warned that it would not be a quick and easy trip to the top as several resistance levels have been established in recent months.

“There are many resistances on the upside and there will likely be a push up to $17,500-$18,500 followed by another drop,” he said. “If $18,500 holds as support, $19,500 – $20,000 are the next resistances to test.”

This outlook was confirmed by market analyst Michaël van de Poppe, who posted the following tweet highlighting a possible rally towards the $17,500-$18,000 region once the resistance at $16,550 is overcome.

Altcoins rally higher

The altcoin market reacted positively to the day’s developments, as only a handful of tokens in the top 200 were in the red for the day.

Daily performance of the cryptocurrency market. Source: Coin360

The best performance of the day was recorded by Nano (XNO), which gained 79.34%, followed by a price increase of 30.29% for (TIME) and a gain of 18, 88% for Solana (SOL).

The overall cryptocurrency market capitalization now stands at $829 billion and Bitcoin’s dominance rate is 38.4%.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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