As the United States Federal Reserve announces its latest interest rate decision, the world is watching with bated breath to see how the cryptocurrency market, especially bitcoin, will react.
In recent months, the highly volatile digital currency has been caught in a bearish trend, leading investors to question whether this decline will continue or if a bullish reversal is in the offing.
In this price prediction, we’ll explore the various factors affecting bitcoin’s price, analyze expert predictions, and delve into market indicators to shed light on whether the bear market is finally coming.
US interest rate decision is announced
To combat inflation, the Federal Reserve of the United States has increased interest rates Highest level in 16 years.
The benchmark rate has been increased by 0.25 percent. eleventh rise over the past 14 months, and now range from almost zero to 5% and 5.25% in March 2022.
Significantly higher interest rates are a direct result of this development, which has slowed down industries such as the housing market and contributed to the recent failure of three US banks.
Federal Reserve Chairman Jerome Powell said it is possible there may not be a need to raise interest rates further at this time, calling the announcement a “significant change”.
However, he did not rule out introducing new policies, saying that the bank’s decisions would be evidence-based.
Last year, when US prices were rising at their fastest rate in decades, the Federal Reserve Board began its aggressive interest rate hikes, prompting central banks around the world, including Britain and Europe, to take similar measures. Did.
When interest rates rise, it increases the cost of borrowing money for things like buying a home or expanding a business, which can reduce demand and lower prices.
Inflation in the United States has slowed since the Fed’s campaign began. Despite hitting its lowest point in nearly two years in March, inflation of 5% is still well above the Fed’s 2% target.
bitcoin price
During the Asian session, bitcoin bounced above the $28,100 level and traded near $28,766, although even this level is not looking very solid today. A breakout above this level has the potential to propel BTC price to $29,295
At the moment, bitcoin is facing a lot of resistance near the $29,295 mark. A positive break above this particular level could propel bitcoin price towards the subsequent targets of $29,975. If the uptrend continues, BTC may target the $30,000 mark, which also acts as a psychological barrier.
On the four-hours chart, bitcoin has slipped below the 50-day exponential moving average, which previously acted as a support area around the $28,800 level.
The candlestick patterns are currently indicating a strong bearish sentiment in the market, while the RSI and MACD indicators point to a potential downside bias for bitcoin price today.
As indicated by the trendline on the 4-hours chart, bitcoin may find immediate support near $27,600. If the price breaks this important $27,600 level, BTC could move higher towards the next support at $27,200.
Top 15 Cryptocurrencies to Watch in 2023
In addition to bitcoin, the market offers a variety of promising cryptocurrencies, including emerging altcoins and presale tokens with the potential for substantial returns.
bearing this in mind, cryptonews The Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023, each of which exhibits significant growth potential in both the short and long term.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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