The price of Bitcoin currently remains stable around the $30,000 mark. However, a significant resistance level at $30,800 has drawn attention as an important determinant of its future price movement. Meanwhile, economic events and indicators such as the Unemployment Claims data and the testimony of Federal Reserve Chair Powell are also closely monitored.
Scenarios like the persistence of high inflation in the service sector, tight job market, and further interest rate hikes emerged from the statements of Federal Reserve Chair Jerome Powell during his testimony to the Senate Banking Committee. While Powell mentioned that inflation has moderated somewhat since the middle of last year, inflation pressures still remain high. Consequently, policymakers believe it will be appropriate to raise interest rates further by the end of the year.
The anticipation of higher interest rates may lead to a stronger US dollar, putting downward pressure on Bitcoin’s price. Additionally, concerns about inflation and its potential impact on the economy could drive investors to seek alternative assets like Bitcoin as a hedge against inflation.
Analyzing technical aspects of Bitcoin on the daily timeframe, we observe the emergence of three bullish candles referred to as “three white soldiers,” propelling Bitcoin’s price towards the $30,000 level. However, substantial resistance at the $30,700 level forms a double-top pattern restricting Bitcoin’s upward momentum, potentially causing a corrective movement in its price.
If Bitcoin fails to surpass the $30,700 level, a close below it might initiate a correction towards the 23.6% Fibonacci retracement level around $29,300. Subsequent selling pressure could lead to a decline towards the 38.2% Fibonacci level, near $28,400. In a bearish scenario, next targets to watch for are around $27,750 or $27,000, corresponding respectively to the 50% and 61.8% Fibonacci retracement levels.
For traders considering a selling position, monitoring the $30,700 level closely and seeking potential short positions below it while placing stop-loss orders above $31,000 is advisable. On the other hand, a retracement towards the $27,000 area could present an attractive buying opportunity.
Keeping an eye on top 15 cryptocurrencies is crucial, and resources such as Industry Talk and Cryptonews curate an up-to-date list of digital assets to watch in 2023. As the landscape of digital assets constantly changes, staying informed about these cryptocurrencies allows you to remain ahead of the curve.
Source: Cryptonews
