The price of the bitcoin cryptocurrency has gradually increased to $24,350 after being consistently below it for two weeks. Even better would be to state that the cryptocurrency smoothly approached the level of $24,350 and is currently edging away from it. In actuality, something so "basic" does not mean anything at all. Bitcoin can't just keep growing after it increased by 50% just in January. Therefore, no additional inferences about the technical picture are possible. Everything still depends on the $24,350 threshold. By overcoming it, bitcoin will be able to maintain its upward trend, which is already considered a new "bullish" trend. If it is not overcome, the cryptocurrency will quickly return to a "bearish" trend or it will stay in the side channel between $15,500 and $24,350.
In his speech last night, Jerome Powell didn't offer the markets any new information. He merely emphasized how challenging it might be for regulators to deal with excessive inflation. According to Powell, the labor market is in an excellent state and shows no signs of being impacted by the Fed's monetary policy, which is very positive. He also mentioned that the Fed might increase the rate numerous more times if data on the labor market and unemployment stay strong. Powell, therefore, stated that the rate could increase more than anticipated at this time and potentially reach 6%. Such news has no positive implications for bitcoin. It is still subject to the monetary policies of the world's central banks, and when interest rates rise, bitcoin becomes less appealing. As several "crypto experts" have claimed for many years, it is not a defense against inflation or the depreciation of fiat money. Even today, Cathie Wood talks about how purchasing bitcoin can help you save money, but in reality, it is still just an investment instrument.
As a result, bitcoin's "foundation" is still weak, although theoretically, it might still expand despite this. It only needs the market's willingness to purchase. However, for the time being, we think that bitcoin is in a side channel and may return to its lower limit.
The "bitcoin" quotes remain close to the level of $24,350 on a 24-hour basis, which has already almost been reached. Rebounding from this point can put bitcoin back on a downward trend, and passing through it can raise questions about whether the "bearish" trend will continue. We do not think that the "bullish" trend has already started, and we do not think that 2023 will see the end of bitcoin price declines. For "bitcoin," the fundamental background is still fairly complicated. However, after surpassing the level of $24,350, purchases with a target of $29,750 will be feasible. Rebound (not overcoming) – sales with a target of $18,500.
