As Bitcoin’s unstable journey continues, Federal Reserve Chair Jerome Powell’s recent statement has raised concerns among investors. Powell mentioned that it might be a “couple of years” before interest rates are cut, leading to uncertainty and speculation about a potential crash that could push Bitcoin’s value down to $20,000. Amidst this turbulence, investors and crypto enthusiasts are left pondering about a significant downturn for Bitcoin in the near future.
The US Federal Reserve’s decision to maintain the current interest rate level comes after 10 consecutive rate hikes since March 2022. This is due to positive economic indicators like job gains and low unemployment rates. Despite a moderation in inflation, the Fed aims for a 2% target and full employment. Stock market declines and an increase in gold and silver prices followed the announcement. Fed Chair Powell added that more rate increases are possible by year-end, disappointing crypto market participants and impacting the already declining crypto liquidity.
In related news, Binance, the world’s largest digital asset exchange, is close to reaching a compromise with the US and the Securities and Exchange Commission (SEC) to avoid asset freezing. US District Judge Amy Berman Jackson noted that Binance and the SEC are “not that far apart” in reaching an agreement that ensures the protection of client cash without endangering the cryptocurrency industry. As part of the compromise, Binance will transfer users’ cryptocurrency holdings to new wallets under the management of its US-based employees to meet SEC demands.
Technical analysis of Bitcoin price prediction reveals intriguing patterns. On the 4-hour timeframe, signs of a potential reversal follow a significant decline. Hammer candlestick formation and seller exhaustion further suggest weakening bearish sentiment, while an engulfing bullish pattern indicates the rise of buyer influence. As such, Bitcoin’s completed 23.6% retracement around the $25,150 level could expose it to the next retracement level at $25,400, paving the way for further resistance. However, initial support is expected around $24,750, with a break below possibly resulting in a downward trend toward subsequent support levels.
As we enter 2023, stay informed about new initial coin offerings (ICOs) and alternative cryptocurrencies by exploring top digital assets to watch. Industry experts from Industry Talk and Cryptonews have curated a comprehensive list of 15 cryptocurrencies to monitor, helping you stay ahead of the curve and explore investment opportunities within the dynamic world of digital assets.
Source: Cryptonews
