On the first day of December, small recovery is dominant in the crypto money markets. The leading cryptocurrency Bitcoin rose to the level of $ 17,194 last night. Well, let’s take a look at why Bitcoin and cryptocurrencies rose.
What Did Jerome Powell Say?
Cryptocurrency markets were priced positively before Jerome Powell’s speech yesterday. After Jerome Powell’s speech at an event at the Brookings Institution yesterday evening, the Bitcoin price rose above the $ 17 thousand level. So what did Jerome Powell say that the crypto money market was priced somewhat positively in this painful process?
Jerome Powell touched on inflation and interest rates in his speech yesterday. Stating that inflation was very high and that there was no full progress even though there were minor recoveries, Powell stated that the increase in interest rates should be softened and that this could be done in the December meeting, which is the last meeting of the year.
Powell signaled that the Fed could raise the main interest rate by half a point at its December meeting. That’s a smaller increase after four consecutive 75 basis points. In his statement, Powell added that smaller increases should not be perceived as a sign that the fight against inflation will be abandoned. In general, we can say that the cryptocurrency market has turned green after Powell’s keynote speeches. Bitcoin rose 4.39% daily to $ 17 thousand 194 and then continued its sideways movements. The $17,194 level is the highest level Bitcoin price has seen in the last 20 days. However, experts say that the leading crypto asset must regain the $19,000 region to start a good price action.
It wasn’t just Bitcoin that rose with Powell’s speeches, but after the president’s speech, US indices also started to rise. The Nasdaq was up 4.41%, the S&P 500 2.18% and the Dow Jones up 3.09%.
In general, we can say that the news of a softening in interest rates, in the midst of many problems such as the FTX crisis, BlockFi and Genesis crises, gave the markets a bit of a breather.
What Does Glassnode Data Say?
Another development regarding Bitcoin is the data provided by the Glassnode company. According to the latest data released by the data analytics company, the demand for Bitcoin by small and medium-sized investors has increased and reached record levels. The number of investors holding between 0.1 and 10 Bitcoins has reached a new high, surpassing its all-time high. According to the data, small investors have bought 96,200 Bitcoins despite the fear environment since the FTX collapse. This shows that investors have not lost their trust in Bitcoin and the tendency to accumulate has increased.
BTC Price Analysis
When we take a look at the support and resistance levels to follow for the leading cryptocurrency, the first resistance level to be encountered if the rise continues is at the level of $ 18,000, while the other resistance level is at the level of $ 19,600. In the event of a possible decline, Bitcoin may experience a pullback to the $16,500 support level. If it fails to hold there, the next level of support is located in the $15,900 region.
