While Bitcoin analysts focus on the details that will come out of the FED minutes for gold, gold has turned to a horizontal course. cryptocoin.comWe have compiled the predictions of Bitcoin analysts for you.
Interest rates are awaited
The interest rate action to be taken by the central banks is focused on the announcement of the minutes of the Fed’s interest rate decision. In addition, with the signals that the central banks will continue to increase interest rates in 2023 and the messages that the inflation problem will continue for a while, gold is negatively affected.
Today, the Fed’s meeting minutes have affected gold prices. However, with the signals that will emerge from the Fed’s minutes for a future rate hike, gold will determine its direction.
Bitcoin cannot go above the set price
Data provided by TradingView shows that the early morning attempt by Bitcoin (BTC) bulls to push the price above the $25,000 resistance was strongly rejected by the bears, causing the top crypto to drop by 4.1% to $24,225 in the afternoon.
Bitcoin futures prices for March ‘reached another high on Tuesday’ before pulling back in the afternoon, according to analyst Jim Wyckoff. Also, the ‘Bulls regained the short-term overall technical advantage to suggest more upside. The price rise has started again on the daily chart.’ note dropped.
showed great resistance
The key support area for Bitcoin found the area between $20,800-$21,700 which served its purpose in trading last week, which is also the 0.618 fib retracement level, with ‘another leg towards the $25,200-$25,500 resistance’ as per Eight Global’s latest market update. concluded.
For those looking for the opportune time to re-enter the market, Eight Global noted that ‘aggressive long entries may be sought during retests of the 8EMA and 0.5 fib retracement level’, but ‘a more moderate place for entries is $22,400.’ said.
The main resistance to be overcome for now is the $25,200-25,500 zone, which the bulls failed to make in the early hours of Tuesday, followed by the next major resistance zone at $28,000. The significance of the $25,000 resistance level was expanded in Arcane Research’s latest “Ahead of the Curve” news release, stating that Bitcoin ‘traded in the higher range from the trading range that emerged after the 3AC crash in the summer of last year.’
The research firm also pointed out that last week’s rally did not reflect performance in broad financial markets. We also saw similar signs of independent crypto strength during the ‘January weekend rallies’. This is a positive trend as it could rekindle external demand for BTC as a portfolio diversifier.’ it was stated.
Retracement in the altcoin market
The altcoin market has been hit hard by the BTC pullback as traders see this as a sign that the market may struggle in the short term and take advantage of the opportunity to exit the market while there are still gains to be claimed.
Notable exceptions to the downturn include Ankr (ANKR), which gained 35.24% the day after the project unveiled a new partnership with Microsoft to offer cloud hosting, UMA (UMA), which gained 16.17%, and 15.47%, which gained 15.47%. Conflux (CFX) is included. The overall cryptocurrency market cap is currently $1.11 trillion and Bitcoin’s dominance rate is 42.5%.
A big test for Bitcoin
Bitcoin is performing well this year and traders predict that the cryptocurrency will test its next major threshold at $30,000. Heisenberg, a popular cryptocurrency trader, tweeted that ‘the bulls will push this above $25,000 soon’ and that he predicts ‘$30k the next big test’.
He tweeted, ‘The bulls had a job this weekend. Failed to close above the horizontal resistance zone for a bull trigger,” describing Bitcoin’s ongoing battle to break above this key level.
Meanwhile, Inmortal pointed to the challenge Bitcoin investors are currently facing by tweeting that long-terms are having a hard time. In fact, according to Wujastyk, the cryptocurrency is currently trading along the rising wedge resistance zone.
Also, Barchart stated that Bitcoin started selling after Coinbase’s earnings report. The crypto giant reported a huge loss but underperformed a little bit analysts’ forecasts. Although Bitcoin is struggling to break the current level of resistance, many analysts are still bullish on the long-term prospects of the digital currency. They cite factors such as Bitcoin’s increased adoption by institutional investors and its limited supply as reasons for its potential future success.
Markets higher than expected
Mike McGlone pointed out that a stock market dumping may be necessary to turn the Fed towards economic easing. McGlone said this in the notes attached to a tweet yesterday. According to McGlone, Bitcoin and equity markets have soared this year on expectations of Fed easing. However, in the face of strong February inflation data, McGlone does not expect this easing to begin any time soon, noting that a sharp drop in stock markets could be a necessary catalyst.
The Fed funds rate is currently around 4.75% after a 0.25% increase at the start of the month. However, officials argue that the Fed needs to raise this benchmark above 5% in order to bring inflation back to the 2% target level. This points to at least a few rate hikes, as Fed Chairman Jerome Powell has highlighted.
Trend vs. Trade – #Bitcoin vs. Bear Market, Fed:
Market expectations for the #FederalReserve to pivot toward easing are often necessary for a sustained recovery in risk assets, but a lower plateau may be essential for the flip. pic.twitter.com/GSiU43P1Fi
— Mike McGlone (@mikemcglone11) February 21, 2023
Michael Burry, famous for predicting the housing market crash years in advance, predicted an imminent stock market crash triggered by high interest rates. Burry says the crash will be similar to the dot com bubble.
Regardless of this, ‘Rich Dad Poor Dad’ author Robert Kiyosaki continues to use Bitcoin as a store of value and encourages people to move their investments and savings into Bitcoin, gold and silver. This seems to be playing out already, as it has moved down from the ascending triangle chart pattern identified by technical analyst Duo Nine. Federal Open Market Committee minutes are scheduled to be released today.
