The price of Bitcoin has had an eventful week, with fluctuations caused by concerns about inflation. Despite this, it has remained above $24,000. Analysts are now anticipating the possibility of its value rising beyond the psychologically significant threshold of $25,000.
Similar to any other digital asset that’s traded, the value of Bitcoin is determined by the principles of supply and demand. However, some fundamental global events may also impact its value.
In addition to these events, there are Bitcoin Whales, who possess large quantities of the crypto and can significantly impact the market with their trading activities.
As mentioned, the current Bitcoin price is hovering slightly below $25,000 and has encountered difficulty surpassing this level over the past few days. Despite this, the upward trend remains intact, and the price could break through the $25,000 barrier in the near future.
The crypto market has always been volatile, and so far, Bitcoin has managed to keep rising despite facing its share of ups and downs. So, let's look at the price prediction and acknowledge whether Bitcoin can break the $25k heavy resistance level.
Bitcoin Still Holds The Line
The cryptocurrency market has recently been a source of interest for observers. Despite the influence of traditional macroeconomic factors causing a wave of selling pressure, coin prices have managed to maintain their resistance.
Last week, the government reported a slightly higher-than-expected 0.5% increase in the consumer price index (CPI). Additionally, core inflation rose, reducing the likelihood of a decrease in interest rate hikes. While there is currently no other evidence to suggest the economy is in a favorable state, data regarding expenditures and production is anticipated to provide more clarity in the upcoming weeks.
The cryptocurrency market is presently in a state of neutrality. Although inflation increased last month, it was the first time in a while, and the Federal Reserve's anti-inflationary measures have been effective. As a result, investors should not be overly concerned about a single instance of inflation.
Bitcoin's price has been volatile over the previous week, dropping to $23,499 before rebounding and briefly surpassing the $25,000 threshold twice, on Sunday and Tuesday. The crypto is currently trading at around $24,000, and its price is holding steady above the crucial psychological level of $24,000, giving investors confidence that it may be able to surpass this level in the future.
Bitcoin's technical indicators have been impacted by its failure to experience a significant price surge. The asset is currently behind all major moving average (MA) indicators, including the 10-day MA of around $24,327 and the 200-day MA of around $24,303.
The negative moving average convergence divergence (AMACD) suggests the asset is giving off a sell signal. However, its relative strength index (RSI) of 39.15 indicates that it has yet to be overbought.
If Bitcoin manages to surpass the $25k resistance level, it could be a crucial factor in maintaining its upward trend and may indicate the end of the bear market. Breaking through this level could also pave the way for Bitcoin to reach $30,000. However, it's important to note that the current $24k level is also a significant resistance area that should not be underestimated.
FOMC Minutes Deal Blow to Bitcoin's Prospects
The recently released minutes from the Federal Open Market Committee (FOMC) meeting suggest that the Fed's actions could have been more beneficial for the market. The minutes indicate that the Fed is considering continuing interest rate hikes due to inflation exceeding the 2% target and the labor market being "very tight," which is causing upward pressure on the prices of goods and services. The asset is currently showing a sell signal based on the negative AMACD, but the RSI reading of 39.15 suggests that it has yet to reach the point of being overbought. The minutes reiterated the FOMC's belief that further interest rate hikes are necessary in order to combat inflation. This suggests that the Fed will continue to raise rates as it believes the battle against inflation is not yet won.
The adoption of this policy is likely to have a negative impact on Bitcoin's future prospects. Nevertheless, investors are still committed to holding their positions long-term, particularly given the recent signs of recovery in the crypto market.
New Presales Set to Surge
Investors who are waiting for Bitcoin's price to stabilize and increase may consider exploring other cryptocurrencies that have value and could generate profits. Some of these coins are currently in the presale phase, which allows investors to be early adopters.
C+Charge's native cryptocurrency token, CCHG, is an option for investors who are looking for value-driven cryptocurrencies as Bitcoin's price is yet to make another jump. The platform is focused on transforming the EV charging station industry by providing a peer-to-peer payment system. Currently, in the presale phase, CCHG has attracted over $1.53 million in investments.
Investors should also consider FGHT, which is the native cryptocurrency of Fight Out, a platform that rewards people for exercising and working out through a move-to-earn (M2E) system. FGHT has raised over $4.61 million in its presale and is now available for purchase at $0.02417 per token. Both initial coin offerings (ICOs) have been successful, and as the market develops, investors should consider them as potential options.
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