Bitcoin Price Consolidates Between $27,000 and $28,500
• Bitcoin has been consolidating between $27,000 and $28,500 for the past three weeks.
• A double top formation on higher time frames may indicate a price drop.
• The weekly death cross between the 50 and 200 MA is still in play.
Is the Bull Rally Here to Stay?
The recent Bitcoin macro breakout from last year’s falling trend has reignited optimism for a sustained bull run. Moreover, the worst cases in the crypto market are now technically behind us.
Bitcoin Prices Reacting to High-Impact News
High-impact news have been influencing Bitcoin prices significantly—particularly those from the US Federal Reserve (Fed). To combat high inflation rates, the Fed raised interest rates nine times since March 2022; resulting in a decrease of US inflation from 9.1% in June 2022 to 6%. Additionally, last week saw a decrease of $73.6 billion to approximately $8.63 trillion in Fed balance sheet due to banks trimming emergency borrowing from Fed owing to stabilization in banking system.
What Does This Mean for Bitcoin Prices?
Though various indicators might suggest an imminent price decline for Bitcoin, there is still hope that sustained bullish sentiment will remain intact given recent developments such as macro breakout and worst cases being technically behind us. Additionally, high-impact news have been affecting BTC prices significantly; hence it can be expected that US employment data today may have an impact on BTC prices and potentially lead it towards rally up to $30k before closing time today.
It remains to be seen whether or not this possible rally occurs today ahead of US employment data release but either way, it is clear that high-impact news can have significant effect on BTC prices and hence should be watched closely by investors and traders alike if they want to make informed decisions about their investments moving forward.