As we predicted, Bitcoin has risen to the $29,750 mark. Over the past week, it has been working hard to avoid a decline or correction, which it managed to do. It tried to go below the $29,750 level yesterday but immediately felt support from the 100.0% Fibonacci level and the Senkou Span B line on the 4-hour timeframe. Thus, the bears retreated, and the bulls resumed buying. Since there was no consolidation below the $29,750 level, we still expect the world’s first cryptocurrency to grow, with a target of $34,267.
In recent months, we have already mentioned that the fundamental background has shifted in favor of Bitcoin and the entire cryptocurrency market. The fact is that the Federal Reserve is approaching the end of its monetary policy tightening cycle, the “banking” crisis in the United States forced the Fed to inject an additional $300 billion into the economy, and inflation across the ocean is falling at a fairly fast pace, burying the most aggressive expectations for the Fed’s rate. By the way, the dollar could have strengthened against Bitcoin recently because several Federal Reserve’s monetary committee members stated that the rate would continue to rise. However, the markets believe that this refers to a maximum of one increase in 2023. The core inflation rate in March slowed from 6% to 5%, so there is no longer any point for the regulator to continue tightening. We admit there may be two more tightenings in reality, but this is not so important anymore, as the market has already priced them “in advance.”
By the end of the year, the Federal Reserve may already have begun to lower its key rate, which will be the best New Year’s gift for Bitcoin. It is difficult to say which specific future decisions the market has already priced in. Bitcoin may now be growing against the backdrop of future monetary policy easing. But there is no denying that the current environment is very favorable for it. In the near future, no reports or events are planned that could significantly affect the mood of crypto traders. Whatever news comes from the United States, it is unlikely to impact Bitcoin’s victorious march significantly. It has gained momentum and appreciated by 100% since its 12-month lows. The stronger its price growth, the more investors will want to join the trend.
On the 24-hour timeframe, Bitcoin remains above the important $29,750 level so that traders can stay in long positions with a target of $34,267. There are no signs of the beginning of a correction yet. Consolidation below the $29,750 level will be a sell signal and a signal for correction. Selling Bitcoin may also be relevant when forming such a signal, but the trend is now “bullish,” and a strong decline in Bitcoin’s price is not expected in the presence of an ascending trend line.
The material has been provided by InstaForex Company – www.instaforex.com
As we predicted, Bitcoin has risen to the $29,750 mark. Over the past week, it has been working hard to avoid a decline or correction, which it managed to do. It tried to go below the $29,750 level yesterday but immediately felt support from the 100.0% Fibonacci level and the Senkou Span B line on the 4-hour timeframe. Thus, the bears retreated, and the bulls resumed buying. Since there was no consolidation below the $29,750 level, we still expect the world’s first cryptocurrency to grow, with a target of $34,267.
In recent months, we have already mentioned that the fundamental background has shifted in favor of Bitcoin and the entire cryptocurrency market. The fact is that the Federal Reserve is approaching the end of its monetary policy tightening cycle, the “banking” crisis in the United States forced the Fed to inject an additional $300 billion into the economy, and inflation across the ocean is falling at a fairly fast pace, burying the most aggressive expectations for the Fed’s rate. By the way, the dollar could have strengthened against Bitcoin recently because several Federal Reserve’s monetary committee members stated that the rate would continue to rise. However, the markets believe that this refers to a maximum of one increase in 2023. The core inflation rate in March slowed from 6% to 5%, so there is no longer any point for the regulator to continue tightening. We admit there may be two more tightenings in reality, but this is not so important anymore, as the market has already priced them “in advance.”
By the end of the year, the Federal Reserve may already have begun to lower its key rate, which will be the best New Year’s gift for Bitcoin. It is difficult to say which specific future decisions the market has already priced in. Bitcoin may now be growing against the backdrop of future monetary policy easing. But there is no denying that the current environment is very favorable for it. In the near future, no reports or events are planned that could significantly affect the mood of crypto traders. Whatever news comes from the United States, it is unlikely to impact Bitcoin’s victorious march significantly. It has gained momentum and appreciated by 100% since its 12-month lows. The stronger its price growth, the more investors will want to join the trend.
On the 24-hour timeframe, Bitcoin remains above the important $29,750 level so that traders can stay in long positions with a target of $34,267. There are no signs of the beginning of a correction yet. Consolidation below the $29,750 level will be a sell signal and a signal for correction. Selling Bitcoin may also be relevant when forming such a signal, but the trend is now “bullish,” and a strong decline in Bitcoin’s price is not expected in the presence of an ascending trend line.
The material has been provided by InstaForex Company – www.instaforex.com
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