The recent significant drop of over 5% in Bitcoin’s price has raised concerns among investors and traders. As the world’s leading cryptocurrency, Bitcoin’s price movements often significantly impact the broader market. The question now is whether Bitcoin can find enough support to prevent further declines and stabilize above the crucial $24,000 level.
The United States Federal Reserve has opted to maintain the federal funds rate at its current level this month after a series of ten consecutive rate increases since March 2022. The decision comes in light of indications pointing to a modest uptick in economic activity, highlighting the strength of job gains and the low unemployment rate. The FOMC’s ongoing objective remains to reduce inflation to the target range of 2% to 3%.
Following the announcement, stock indexes on Wall Street experienced declines, with a slight dip in the cryptocurrency market. However, spot prices for gold and silver increased in response to the Fed’s latest statement. Nearly all committee participants expect to raise interest rates somewhat further by the end of the year, according to Jerome Powell.
In other news, Miami Mayor Francis Suarez, a Bitcoin advocate, has officially registered to run for president with the Federal Election Commission. Suarez aims to transform Miami into a thriving Bitcoin hub and has even started accepting his salary in Bitcoin. Despite facing tough competition from prominent contenders like former President Donald Trump and Florida Governor Ron DeSantis, Suarez may face challenges in gaining national recognition.
Suarez praised Bitcoin’s potential to democratize wealth and mentioned exploring the use of Bitcoin for tax payments and compensating municipal workers. He also introduced MiamiCoin (MIA), based on the Stacks blockchain, believing that it could provide regular BTC incentives to Miami residents in the future. Although MIA and another city token, NYCCoin, faced trading suspensions due to liquidity issues on OKCoin in March, Suarez remains unwavering in his trust in cryptocurrencies. Despite Bitcoin’s price decline, he emphasized that his confidence in the underlying technology remains intact.
Bitcoin is currently trading at $25,105, marking a nearly 5% decrease on Thursday. This drop comes in the wake of a hawkish statement from the Federal Reserve and a turbulent week for the cryptocurrency market, causing Bitcoin’s price to fall below the $25,000 threshold for the first time since mid-March. On the technical front, the next support level to watch for is around $24,350, as indicated by the MACD and RSI indicators, which are in the selling zone. The 50-day exponential moving average also supports the downward trend in the Bitcoin price.
Closely monitoring the $25,000 level is essential, as a break below it could result in further downward movement. At the same time, a close above $25,000 may trigger a bullish retracement toward the $25,600 or $26,200 levels. Stay informed about the latest initial coin offering (ICO) projects and alternative cryptocurrencies by regularly exploring our carefully selected collection of the top 15 digital assets to watch in 2023.
Source: Cryptonews
