Bitcoin’s price dynamics have been quite interesting to watch this week. The asset’s price has seen some shaky performances as inflation fears rocked the market again, but it has managed to stay above the $24,000 mark so far. Now, analysts are once again bracing for a possible surge above the $25,000 psychological comfort level.
Bitcoin Holds the Line
The past few days have been quite interesting for cryptocurrency market observers. Coin prices have done quite well to hold resistance after a wave of selling pressure came into the market due to traditional macroeconomic factors.
Last week, the government reported a 0.5% rise in the consumer price index (CPI) – slightly more than analysts had anticipated. Additionally, core inflation rose, dampening hopes for a possible drop in interest rate hikes. Although there are no other indicators to show that the economy is necessarily in good shape at the moment, metrics such as expenditure and production information should be able to shed more light on that in the coming weeks.
Currently, the crypto market appears neutral. Inflation may have risen last month, but it was the first time in a long time that the metric increased. The Federal Reserve’s monetary policy instruments for fighting inflation have so far proven to be rather effective, and one slip-up shouldn’t be so much to scare investors off.
This was evident as Bitcoin’s price experienced a roller coaster in the past week. The crypto asset fell as low as $23,499, but it quickly recovered and briefly crossed the $25,000 mark – first on Sunday, then on Tuesday.
At the moment, Bitcoin trades at $24,269. The asset’s price is currently holding well above the $24,000 point, keeping investors confident that it would be able to move ahead and challenge that psychological resistance point later down the line.
Bitcoin’s inability to hit a major price surge has also affected its technicals. The asset currently trails all major moving average (MA) indicators, ranging from the 10-day MA of $24,327 to the 200-day MA of $24,303.
A negative moving average convergence divergence (AMACD) shows that the asset gives off a sell signal. However, its relative strength index (RSI) of 39.15 shows it is not overbought yet.
FOMC Minutes Deal Blow to Bitcoin’s Prospects
While investors appear to still be holding the line, it is worth noting that the Fed hasn’t necessarily helped matters. Minutes from the Federal Open Market Committee (FOMC) meeting were released earlier this week, with the agency hinting that it could continue with the interest rate hikes.
According to the minutes, inflation remains well above the Fed’s 2% target, and the labor market remains “very tight,” putting upward pressure on the prices of goods and services.
Consequently, the Fed has approved a 0.25 percentage point increase in rates. This is the smallest hike in interest rates since the Fed’s first monetary tightening cycle, which started a year ago. The move brought the Fed funds rate to a target range of 4.5% to 4.75%, with the Fed explaining that this reduced pace also comes with a renewed level of concern about inflation.
The minutes reiterated that FOMC members believe that ongoing rate hikes will continue to be a necessity. So it appears that the Fed will continue to raise rates because it believes the fight against inflation is far from over.
This new policy will most likely put a damper on Bitcoin’s prospects. However, investors remain committed to holding the line in the long run, especially as the crypto market has shown some healthy signs of recovery.
New Presales Set to Surge
With Bitcoin’s price still looking to establish a basis for another jump, investors should know that there are other value-driven cryptocurrencies to consider for profit. As several of these coins are currently in the presale phase, there is also the opportunity to be an early adopter.
One such is CCHG – the native crypto token for C+Charge. The platform aims to transform by providing an efficient peer-to-peer (P2P) payment system for electric vehicle (EV) charging stations. The digital asset is currently on presale and has garnered over $1.53 million.
Another valuable coin for investors to consider is FGHT, the native token for Fight Out. The move-to-earn (M2E) platform makes it easy for people to get rewards when they exercise and work out. The crypto token has raised over $4.61 million in its presale, and investors can now purchase 1FGHT for $0.02417.
Both presales have done quite well, and as the market matures, they should be on investors’ watchlists.
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Fight Out - Next Big Train-to-Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $5M Raised
- Real-World Community, Gym Chain
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