04.02.2023 08:07 PM
The bitcoin cryptocurrency is nearly at $24,350

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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 the major option is a new collapse of the first cryptocurrency in the world, even though the level of $24,350 remains unbreakable. We don't anticipate that bitcoin will suddenly begin a new "bullish" trend. However, if the $24,350 level is broken, there is a greater likelihood that a new "bullish" trend will develop. Naturally, this does not imply that bitcoin will reach $50,000 in a few months. The new trend is probably going to move more slowly than all the others.

This week, bitcoin had a fundamental background at its disposal that wasn't entirely typical of it. Rarely do central bank meetings or standard macroeconomic statistics affect the price of cryptocurrencies. That's why we were taken aback in January when bitcoin experienced exponential growth following the subsequent inflation report—the sixth in a row with a drop. It should be highlighted, though, that this can occasionally occur, so it was not necessary to disregard the Fed meeting. As expected, the rate increased by 0.25%, and Jerome Powell pledged to keep tightening monetary policy. These two updates are both positive and negative for bitcoin. Although it is positive that the Fed has slowed the rate of growth, this aspect has been carefully planned "in advance" during the past month. It's awful that the Fed plans to increase rates more because the market was anticipating a faster end to the tightening cycle. Due to traders' conclusions that these two factors cancel each other out, there were no significant moves.

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The US data from Friday was pretty impressive. 3.4% was the unemployment rate, and there were 2.5 times as many non-farms as expected. This is harmful to Bitcoin. First, the value of the US dollar has increased. Second, a strong economy and labor market have given the Fed complete discretion, allowing it to raise interest rates as much as necessary. The ECB and the Bank of England, for instance, do not have access to such a possibility. But as we can see, the reports from Friday were disregarded. The level of $24,350 is very crucial right now.

The "bitcoin" quotes have moved over the past day to a level of $24,350, which is almost reached. Rebounding from this point can put bitcoin back on a downward trend, and passing through it can raise questions about whether the "bearish" trend will continue. We do not think that the "bullish" trend has already started, and we do not think that 2023 will see the end of bitcoin price declines. For "bitcoin," the fundamental background is still fairly complicated. However, after surpassing the level of $24,350, purchases with a target of $29,750 will be feasible.

Paolo Greco,
Analytical expert of InstaForex
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