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Bitcoin to US$14k or US$22k? The Coming Days Will Decide BTC’s Fate

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Bitcoin

Bitcoin is in a crucial position right now and its ability to retain its resistance will decide its future

The ongoing slaughter of the crypto market and the recent downturns of the economic and financial markets have caused havoc in the investment community. Events like significant crypto companies and hedge funds filing for bankruptcy and the collapse of the LUNA ecosystem have adversely shaken the economic and financial markets. At the time of writing this article, the Bitcoin price has surged above the US$23K mark and has remained above the US$21,000 support zone. The crypto along with other altcoins had crashed previously, aiding in the continuous meltdown of the broader digital asset market. Experts believe that the BTC token is still unable to steer clear above the US$24,000 resistance. Currently, it is quite hard to predict whether Bitcoin will cross the US$25k resistance or dive below the US$18k mark; but it is quite evident that Bitcoin is definitely in its recovery position and is struggling to regain control of the crypto market once again.

Analysts believe that the Bitcoin price is demonstrating certain concerning signals this week. After surging by almost 18% this month, Bitcoin retracted back to its previous price range and found resistance at US$21k. Its current price trend indicates an approaching failure in its momentum. Currently, the BTC price declined and has persisted below its 200-WMA, which is quite critical for crypto. For Bitcoin to excel in this volatile crypto market and find a stable resistance, it has to move past its 200-WMA resistance or at least rally past US$25,000. Otherwise, there are chances that Bitcoin will find its next resistance near US$14k, or maybe even below the range.

The Adverse Effect of the Fed’s Interest Rate Hike

Bitcoin’s present condition ails the investment community, but several factors are dictating the price movements of cryptocurrencies. One of the most important factors that are causing intense volatility in the market is the US Federal Reserve’s aggressive moves to reduce the impact of inflation. Recently, the Fed has declared that it would raise the benchmark borrowing cost by almost 0.75% in the continued effort to drain the economic liquidity and settle down the impact of inflation. Now, investors are confused as to how the broader crypto market, especially Bitcoin will react to this rate hike.

The Fed’s market liquidity-reducing initiatives, like rate hikes and balance sheet runoffs, have destroyed the crypto market over the past few months. Since late 2021, the crypto market has started declining, leading to major financial losses for investors and crypto businesses. BTC has reduced by over 60% since the central bank decided to increase interest rates during the first half of 2022.

Nevertheless, experts believe that the slow growth of Bitcoin might not necessarily be harmful. The staggering prices of cryptocurrencies have instigated several potential investors to buy digital assets. Investor inflows started to pour in extensively when BTC reduced below the US$20k mark. The rising number of Bitcoin investors might have also become a major turn in investor sentiments.

So, should you buy Bitcoin right now?

It is quite difficult to predict if Bitcoin will plummet down or cross the US$25k resistance, but it is evident that either way BTC and its investors will experience profits. If BTC successfully retains its position above the US$22k mark, it might experience substantial profits. But if Bitcoin climbs down the success ladder, it would continue to invite more long-term investors to the market!

The post Bitcoin to US$14k or US$22k? The Coming Days Will Decide BTC’s Fate appeared first on .



Bitcoin

Bitcoin is in a crucial position right now and its ability to retain its resistance will decide its future

The ongoing slaughter of the crypto market and the recent downturns of the economic and financial markets have caused havoc in the investment community. Events like significant crypto companies and hedge funds filing for bankruptcy and the collapse of the LUNA ecosystem have adversely shaken the economic and financial markets. At the time of writing this article, the Bitcoin price has surged above the US$23K mark and has remained above the US$21,000 support zone. The crypto along with other altcoins had crashed previously, aiding in the continuous meltdown of the broader digital asset market. Experts believe that the BTC token is still unable to steer clear above the US$24,000 resistance. Currently, it is quite hard to predict whether Bitcoin will cross the US$25k resistance or dive below the US$18k mark; but it is quite evident that Bitcoin is definitely in its recovery position and is struggling to regain control of the crypto market once again.

Analysts believe that the Bitcoin price is demonstrating certain concerning signals this week. After surging by almost 18% this month, Bitcoin retracted back to its previous price range and found resistance at US$21k. Its current price trend indicates an approaching failure in its momentum. Currently, the BTC price declined and has persisted below its 200-WMA, which is quite critical for crypto. For Bitcoin to excel in this volatile crypto market and find a stable resistance, it has to move past its 200-WMA resistance or at least rally past US$25,000. Otherwise, there are chances that Bitcoin will find its next resistance near US$14k, or maybe even below the range.

The Adverse Effect of the Fed’s Interest Rate Hike

Bitcoin’s present condition ails the investment community, but several factors are dictating the price movements of cryptocurrencies. One of the most important factors that are causing intense volatility in the market is the US Federal Reserve’s aggressive moves to reduce the impact of inflation. Recently, the Fed has declared that it would raise the benchmark borrowing cost by almost 0.75% in the continued effort to drain the economic liquidity and settle down the impact of inflation. Now, investors are confused as to how the broader crypto market, especially Bitcoin will react to this rate hike.

The Fed’s market liquidity-reducing initiatives, like rate hikes and balance sheet runoffs, have destroyed the crypto market over the past few months. Since late 2021, the crypto market has started declining, leading to major financial losses for investors and crypto businesses. BTC has reduced by over 60% since the central bank decided to increase interest rates during the first half of 2022.

Nevertheless, experts believe that the slow growth of Bitcoin might not necessarily be harmful. The staggering prices of cryptocurrencies have instigated several potential investors to buy digital assets. Investor inflows started to pour in extensively when BTC reduced below the US$20k mark. The rising number of Bitcoin investors might have also become a major turn in investor sentiments.

So, should you buy Bitcoin right now?

It is quite difficult to predict if Bitcoin will plummet down or cross the US$25k resistance, but it is evident that either way BTC and its investors will experience profits. If BTC successfully retains its position above the US$22k mark, it might experience substantial profits. But if Bitcoin climbs down the success ladder, it would continue to invite more long-term investors to the market!

The post Bitcoin to US$14k or US$22k? The Coming Days Will Decide BTC’s Fate appeared first on .

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