empty
 
 

Forex Analysis & Reviews: Bitcoin breaks through the $17k level amid macroeconomic indicators: will the upward movement continue?
time 01.12.2022 12:30 PM
time Relevance up to, 02.12.2022 10:44 AM

Bitcoin and the cryptocurrency market continue the recovery movement that originated in the current trading week. The main digital asset managed to make a bullish breakout of the $17k level, and the capitalization of all cryptocurrencies reached $858 billion.

The main catalyst for bullish sentiment in the market was macroeconomic factors, as well as the gradual approach of the Christmas holidays. Against this background, Bitcoin resumed its correlation with stock indices.

Fundamental background

Fed Chairman Jerome Powell's speech was the main catalyst for bullish movements in most markets. The head of the regulator said that a pleasant surprise on the decline in CPI in October gives reason to reduce the pace of rate hikes to moderate.

This image is no longer relevant

Powell noted that the first stage of slowing down the rate hike could happen as early as the December meeting. Interest rate futures immediately reacted, and the probability of a 50 bps rate hike in December is 75%.

However, Powell stressed that inflation is still too high, and therefore it is likely that the final rate hike will be higher than the Fed planned in September. He also noted the need for more evidence of lower inflation.

Despite the fly in the ointment, Powell's speech generally confirms the course of the US monetary policy easing. Considering the record rate of monetary easing in history, the markets see the slowdown as positive news.

This image is no longer relevant

The statistics on the US GDP growth in the third quarter also added to the positivity. The indicator was 2.9% against the forecast of 2.7% , which indicates the relative stability of the world's largest economy.

Financial Times experts decided to finish off the markets with a statement that most of the key indicators point to the achievement of the peak point of global inflation. In the coming months, we should expect a fall in inflation worldwide.

Bitcoin analysis

Today's analysis of the state of Bitcoin should start with the US dollar index. The indicator is in a corrective movement and, as of December 1, is trading near 105.7.

That said, USD showed the largest monthly rate in November since 2009. This is positive news for high-risk assets, including cryptocurrencies and the stock market. As we remember, Bitcoin has an inverse correlation with DXY, and given the correction of the index, we should expect more bullish momentum on the cryptocurrency.

This image is no longer relevant

It is also important to note BTC's growing correlation with stock indices. The collapse of FTX broke the co-dependence of financial instruments, but it has subsequently recovered and strengthened.

Given the rising holiday mood in the stock market, which is always accompanied by a New Year's rally, we can expect a similar movement in the price of Bitcoin. However, provided that the conditional Genesis or Gemini will not become another black swan.

This image is no longer relevant

The combination of movements in macroeconomics and related markets allowed Bitcoin to form a bullish engulfing pattern and gain a foothold above $17k. Glassnode experts note that after a successful bullish momentum, the number of addresses in profit reached the level of 50%. This indicates a substantial accumulation of BTC below $20k.

BTC/USD technical analysis

Having reached the $17k round level, the price of Bitcoin faced strong resistance from the bears. The cryptocurrency is on the verge of a bullish breakout of the $15.5k–$17.1k range, but technical metrics point to weakening buying positions.

This image is no longer relevant

Stochastic is gradually forming a "bearish crossover" pattern, and RSI indicates a decrease in buying activity or a significant increase in bearish pressure. At the same time, MACD continues to move upward, suggesting the strength of the medium-term upward trend.

Results

The macroeconomic background and improving investor sentiment contribute to the upward movement of most markets, including cryptocurrency. In the near future, a pause and retest of the $16.7k level is possible, where a local support area has formed.

This image is no longer relevant

To maintain the bullish potential, Bitcoin needs to hold the $16.7k level and gain a foothold above $17k again. Under such conditions, the cryptocurrency will continue to move towards the next targets at $17.6k and $18.2k. The further movement of BTC will depend on the overall situation, since all the positive does not negate a large number of negative factors.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

赚取InstaForex的加密货币利率变化
下载MetaTrader 4并开始您的第一笔交易
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Bitcoin: the week promises to be quiet, but keep an eye on Powell

Bitcoin, unable to climb above $24,000, has rolled back to the support level in the $22,700 area. It can now either recover to last week's highs or break through

Ekaterina Kiseleva 22:55 2023-02-06 UTC+2

Litecoin shows oversold signs again

The price of Litecoin retreated a little in the short term but the bias remains bullish. It's trading at 97.61 at the time of writing. BTC/USD maintains a bullish bias

Ralph Shedler 20:32 2023-02-06 UTC+2

Bitcoin technical analysis for February 6th, 2023.

Bitcoin is trading around $23,000. Price has a small positive slope but it mostly looks like it is moving sideways with no clear upside momentum. Technically trend remains bullish

Alexandros Yfantis 17:25 2023-02-06 UTC+2

Investors' positions divided by strong labor market: why this provoked BTC correction, and what does USD have to do with it?

The bullish trend of Bitcoin, which peaked in mid-January, is gradually ending. With each passing day, there is growing confidence that the $22.9k–$23.4k range will be the final zone within

Artem Petrenko 13:51 2023-02-06 UTC+2

BTC update for February 06,.2023 - Support zone is on the test

Technical analysis: BTC/USD has been trading downside but key support zone at the price of $22.600 is on the test. Trading recommendation: In case of the rejection of the support

Petar Jacimovic 09:30 2023-02-06 UTC+2

Technical Analysis of ETH/USD for February 6, 2023

Crypto Industry News: A set of rules to mitigate cryptocurrency risks was signed last week by the White House and National Economic Council director Brian Deese and Office of National

Sebastian Seliga 08:57 2023-02-06 UTC+2

Technical Analysis of BTC/USD for February 6, 2023

Crypto Industry News: During a recent visit to Sri Lanka, American billionaire Tim Draper introduced the idea of adopting Bitcoin as legal tender in the fight against corruption that

Sebastian Seliga 08:57 2023-02-06 UTC+2

Elliott wave analysis of Litecoin for February 6, 2023

Litecoin is in a minor correction, that ideally should terminate near 94.00 for the next push higher towards 1.0782 to complete wave iii and set the stage

Torben Melsted 06:12 2023-02-06 UTC+2

Ray Dalio: Bitcoin will not be able to replace fiat money.

It is even greater to observe that bitcoin has approached the level of $24,350 on the 4-hour TF. Although there hasn't been a noticeable rebound from this level

Paolo Greco 19:26 2023-02-04 UTC+2

The bitcoin cryptocurrency is nearly at $24,350

The bitcoin cryptocurrency is almost at $ 24,350 and is steadily increasing toward this level. Since bitcoin's price is rising virtually daily, its growth is not that weak. We believe

Paolo Greco 19:07 2023-02-04 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.