- Bitcoin gained minimally within the past 24 hours to $29,429.
- It has been unable to hold above $30,000 for a continuous period.
- There are indications that BTC could benefit from the inflation rate.
While Bitcoin has made a progressive U-turn in its value since hitting its local bottom some time ago. The crypto has largely been hovering around the $29,000-$30,000 mark. It has struggled to hold above $30,000 for a sustained period.
The constant hostility from the SEC has played a part in this, with the Federal Reserve’s decision also proving vital. Although the favorable XRP ruling boosted BTC, after a short while, its value dropped.
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But with the upward progressions, a break out from its almost three-month-long pattern seems likely.
Even at that, there are indications that an increased downside is possible. It is said that the coin has fallen inside a descending parallel channel since early April.
Therefore, where does Bitcoin go from here?
Bitcoin On the Up, But Not ‘There’ Yet
Bitcoin dropped below $25,000 last week due to the Federal Reserve’s halt in the interest rate hike. Yet, it was a case of one step backward and two forward for the coin.
BitBull Capital’s CEO, Joe DiPasquale, opined that it was a positive action for the market. To him, it creates an accumulation opportunity for the mid to long-term future.
He said, “With Fed having left interest rates unchanged, the environment appears supportive for crypto assets to rally again.”
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DiPasquale further commented on how this bodes well for the biggest crypto.
“For now, however, all eyes will be on Bitcoin, especially as its dominance has increased due to selling pressure in altcoins.”
The Fear & Greed Index reads Fear, with a score of 50.
Can the premier crypto be propelled past $30k and above? Industry experts share their thoughts.
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Bitcoin Chances of Growth
One economic indicator that can influence the direction that Bitcoin would take is the U.S. Consumer Price Index (CPI). The U.S. Bureau of Labor Statistics reported a 3.2% increase in inflation, lesser than the 3.3% that was expected.
For now, the impact of the inflation rate is uncertain as BTC has ranged below $30,000 since the data was released. Therefore, there is a possibility for the Federal Reserve to remain hawkish for a while, implementing volatility to the crypto.
Previously, inflation has driven BTC to its all-time highs. The most obvious case was in 2021 when it got to $65,000 during the Fed’s monetary policy expansion. Then, there was a sustained increase in inflation which enabled BTC’s rise through an enormous price rally.
Also, a prediction by “Captain Faibik,” a big Twitter shot, is that BTC is shaping for a colossal breakout to $42,000. His analysis was based on a cup and handle pattern on the weekly chart.
While bulls currently hold the advantage, traders must consider a possible reversal, mainly if the 100-day EMA support diminishes. That would enable increased losses below $25,000, while the opposite is expected if resistance at $27,000 allows the ultimate breakout to $42,000.
Another, by the name of “CrediBULL Crypto,” tweeted,
“Consolidation precedes expansion. Our last corrective structure lasted 48 days and was erased with four days of impulsive price action. Our current corrective structure is 83 days long. When we begin the next impulsive move, we probs erase three months of corrective PA within a week.”
Overall, opinions are torn on whether BTC’s current movement is bullish or can slip to bearish anytime soon. As always, time will tell.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.