“Bitcoin, in the short or even long term, may turn out be a good investment in the same way that anything that is rare can be considered valuable. Like baseball cards. Or a Picasso.” Andrew Ross Sorkin.
The world's biggest cryptocurrency Bitcoin (BTC) is now trading above $43,500, up for the second consecutive day. Meanwhile, the overall, momentum remains mixed as the investors remain concerned about the Fed tightening monetary policy. The market participants now expect the Fed to raise interest rates as many as four times in 2022.
One of the main reasons why the Bitcoin price has struggled in the past few months on prospects for higher interest rates and tighter financial conditions. Bitcoin dropped below $34,000 on Jan. 24, 2022, marking the lowest Bitcoin’s price has been since July 2021. It has fallen 50%, from a high of almost $70,000 in November 2021. However, the BTC eventually started reversing up after sticking above the support for two weeks.
During the last week, the Bitcoin price ended lower after the US Consumer Price Index (CPI) showed that inflation in the world’s largest economy has reached 7.5% year-over-year, the rise in inflation was the largest since February 1982. For this week, the main drivers for Bitcoin remain the comments from the US Federal Reserve policymakers, geopolitical tensions, and the movement of the US dollar. On the other hand, the investors should also monitor the correlation between bitcoin and technology stock prices.
BTCUSD short-term and long-term technical review
Looking at Bitcoin from a very short-term perspective, it is evident that the pair held steady above the previous week low. In the short term, if the bullish momentum continues the next upside levels to watch $44,500 and $45,000/500. On the flip side, the first immediate support can be found at $42,500 and then $41,700.
The below chart plots the long-term view of Bitcoin. On the upper side, a move past last week resistance level of the $45,800 mark is likely to spark a fresh wave of rallies for the crypto pair, which can push its price beyond the $50,000 mark. On the flip side, If the price breaks below the $41,500 support level, it could fall back to the $39,300 and $36,000 levels.
Read more- https://gulfbrokers.com/en/whats-the-next-direction-for-bitcoin