As of Wednesday, the price of Bitcoin (BTC) shows a modest increase of nearly 0.5%, trading around $29,250. Yet the market’s bigwig is caught under $30,000, with investors’ eyes peeled on the imminent rate update from the Federal Reserve (Fed). With an anticipated rate rise, a pall of uncertainty shrouds the market, affecting Bitcoin’s price.
Curiously, while these price shifts unfold, recent development in the UAE presents a contrasting narrative. With Rain, a cryptocurrency firm, given the green light by the regulator to provide cryptocurrency brokerage and custody services, recognition for digital asset markets is gaining momentum.
Just a month ago, triggered by BlackRock’s proposed Bitcoin ETF, Bitcoin burst past the $30,000 ceiling, fuelling speculation of significant institutional fund inflows into crypto markets. However, since then, prices have flatlined, chiefly blamed on the looming Federal Reserve decision on July 26, likely to affirm a 25 basis point interest rate increase.
Current spikes in BTC value are linked to investors banking on the prospective impact of the Fed’s decision by entering long positions. Post-decision, BTC’s value could nose-dive, potentially driving prices deeper south of the $30,000 range, with the market poised on tenterhooks pending the Fed’s monetary policy refresh.
Rain’s newly acquired go-ahead from the Abu Dhabi Global Market Financial Services Regulatory Authority paves the way for both retail and institutional investors in the UAE to enter the crypto market via a regulated platform. Hot on the heels of another regulated crypto exchange, Binance, the crypto service greenlighting by the UAE regulator signals an encouraging trend for the likes of BTC and more crypto assets.
Examining Bitcoin’s price trajectory, a key resistance point is earmarked around $29,550, while the tangible $30,000 level holds substantial sway. Candlestick patterns such as doji and spinning tops over the $28,900 point suggest weakening bearish momentum, likely paving the way for a bullish push.
However, the 50-period exponential moving average around $30,000 could potentially stunt this push, evidenced by neutral signals from the relative strength index and MACD indicators. Currently, Bitcoin’s price corridor is predicted to hover between $29,550 and $28,850. With market volatility in mind, traders are advised to conduct their due diligence before trading.
To stay on top of emerging cryptocurrencies, explore our handpicked collection of top 15 digital assets to watch in 2023, curated by industry veterans from Industry Talk and Cryptonews. These insights will help you stay a step ahead in the fast-evolving digital assets landscape.
Please note, any cryptocurrency projects included in this article do not constitute financial advice. Cryptocurrencies are a high-risk and hugely volatile investment. Always undertake thorough research before making a decision.
Source: Cryptonews
