The performance of the head of the Fed did not bring down the cryptocurrency market and the Bitcoin course. In fact, the situation on the cryptographic has not changed significantly. Trading activity is low, market sentiment is generally negative. This puts pressure on the price of Bitcoin.
However, there is no doubt about the fundamental value of the first cryptocurrency. Over 60% of Bitcoin's supply is controlled by long-term investors, and this is a great fundamental signal. But in the short term, the situation is very tense, since Bitcoin shows dependence on other high-risk assets. Accordingly, the forecasts for the Bitcoin rate are increasingly uncertain.
Fundamental market factors
So far, it can be noted that the bear cycle on the market has not ended. Therefore, it is likely that Bitcoin will test the level of $ 20,000. In addition, the Fed is going to raise the rate further.
It must be recalled that the regulator seizes at least $ 80 billion from the US economy every month. This is equivalent to a 0.5% rate increase%.
The totality of actions within the framework of the aggressive monetary policy of the Fed leads to the fact that overall investment activity is reduced. As CoinShares data for the past week show, investors have withdrawn over $ 17 million from cryptocurrency funds.
Bitcoin Course: Short-Term Analysis
At the moment, the Bitcoin course fluctuates minimally. Currency is still consolidated at about $ 22,000, albeit slowly, as there is low trade activity.
Bitcoin has the opportunity to approach the mark of 23,000, but in order to approach it, you need to make a bovine breakdown of the area $ 22.8k- $ 23k. It is now considered the main resistance zone at the current stage of price movement. Bitcoin needs significant volumes to make sampling and fix at $ 23,000.
But there is a possibility that Bitcoin may continue the downward movement and reach $ 21,500. Thus, while Bitcoin is now consolidating around the level of $ 22,400. If there is no negative news in the coming days, Bitcoin will be able to overcome the 22,500 mark and start testing $ 23,000.