In the world of Bitcoin, the price of BTC is currently maintaining stability around the $30,000 mark. However, all eyes are...
In the world of Bitcoin, the price of BTC is currently maintaining stability around the $30,000 mark.
However, all eyes are now on whether Bitcoin can overcome its double top resistance level at $30,800.
This critical hurdle will determine the next phase of Bitcoin's price movement.
Additionally, there are significant economic events and indicators to monitor, such as the Unemployment Claims data, with 264K claims reported, and the testimony of Federal Reserve Chair Powell.
The strength of the Existing Home Sales figures, with 4.30M reported, will also have an impact on Bitcoin's trajectory.
FED Chair Jerome Powell Indicates Further Interest Rate Hikes Amid Persistent Inflation Concerns
In his testimony to the Senate Banking Committee, Federal Reserve Chair Jerome Powell reaffirmed that the central bank will likely raise interest rates at least once more this year.
Powell emphasized the persistence of high inflation in the economy's service sector and the tight job market.
Despite noting that inflation has moderated somewhat since the middle of last year, Powell highlighted that inflation pressures continue to remain high.
The Fed's policymakers share the expectation that it will be appropriate to raise interest rates further by the end of the year.
The central bank has aggressively raised its benchmark rate since March 2022 to curb inflation.
Powell also expressed concerns about an overly tight labor market putting upward pressure on wages and inflation.
Potential Impact on Bitcoin
The anticipation of higher interest rates can lead to a stronger US dollar, which may put downward pressure on Bitcoin's price as it becomes relatively more expensive for investors.
Additionally, concerns about inflation and its potential impact on the economy may drive investors to seek alternative assets like Bitcoin as a hedge against inflation.
Bitcoin Price Prediction
Analyzing the technical aspects of Bitcoin, specifically on the daily timeframe, we can observe the emergence of three bullish candles referred to as “three white soldiers,” propelling Bitcoin's price towards the $30,000 level.
However, the $30,700 level poses significant resistance, forming a double-top pattern restricting Bitcoin's upward momentum. This resistance level can potentially trigger a corrective movement in Bitcoin's price.
As Bitcoin failed to surpass the $30,700 level, a close below it could initiate a correction, potentially driving the price towards the 23.6% Fibonacci retracement level situated around $29,300.
Subsequent selling pressure may lead to a decline toward the 38.2% Fibonacci level, near $28,400.
Bitcoin Price Chart - Source: Tradingview
In the event of a bearish breakout, the next targets to watch for are around $27,750 or $27,000, corresponding to the 50% and 61.8% Fibonacci retracement levels, respectively.
The $27,000 level holds significance as it has previously acted as a resistance level.
For traders considering a selling position, it is advisable to closely monitor the $30,700 level and seek potential short positions below it, while placing stop-loss orders above $31,000.
Conversely, if Bitcoin retraces toward the $27,000 area, it could present an attractive buying opportunity.
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