The current trading price for Bitcoin oscillates around 29,464, a slight uplift by 0.50% last Thursday, a figure somewhat dwarfed by a wider 3% dip over the preceding week. The tumble was the reaction to the Federal Reserve’s decision to boost the federal funds rate by twenty-five basis points. It seems, despite the economy’s modest expansion, having a tighter leash on the monetary policy has exerted a downward force on Bitcoin.
Interestingly, market participants are keeping an eye on the reverberations of this rate increase, which might partially shape the digital asset’s future shows. The intended impact of this rate uptick was to hold inflation at bay as mentioned in the latest report from the Federal Open Market Committee (FOMC). What’s intriguing though, is that Chair Powell implied that a change-of-course in September is in the realm of possibility, but so, intriguingly, is a pause.
It’s worth noting that July 27 might harbour some selling unrest in the cryptocurrency aisle given that the European Central Bank (ECB) is anticipated to layer on another 25-basis point hike to the interest rates even as the Eurozone grapples with a recession. In an uncannily similar vein, conversations are brewing in the Japan Central Bank about potential rate hikes which could upend Friday’s market atmosphere.
Now, let’s get technical. A confluence of Doji and spinning top candles has encircled support for Bitcoin approximately around the $28,850 zone. Today, the resistance hovers just shy of $29,500, a figure bolstered by a downward trend line on the four-hour schedule. Yet, the recent episode of candle closing insinuates potential for a meagre correction in Bitcoin’s march today.
What’s noteworthy though, is that Bitcoin has already bested the curse of the 50-period exponential moving average (EMA), formerly acting as resistance at about $29,250. This band is now lending a degree of support, and a closing strike above it may echo the drumbeats of a bullish continuation. That said, key technical measures such as the relative strength index (RSI) and moving average convergence divergence (MACD) seem to amplify this prognosis, as they remain lodged in the green zone.
If Bitcoin can cross the threshold at $29,500, the next hurdle is expected at the round $30,000 mark, another figure charged with psychological import. Beyond that, the next barricade is situated around $30,350. However, if Bitcoin were to retreat below $28,850, the subsequent cushion probably lies near the $29,000 level.
To wrap up, the technical prognosis exudes a dash of optimism for Bitcoin. However, only a watchful gaze can capture the subtle skirmishes between support and resistance levels in the present market climate. Always stay informed and remember that, as thrilling as the realm of cryptocurrencies may be, these digital asset ventures do come with their fair share of risks.
Source: Cryptonews
