Bitcoin is trading just above the $44,000 level after breaking through considerable resistance. Following a near $46,000 rejection, Bitcoin’s first crypto market cap traded at the lowest levels.
NewsBTC reported for weeks that Bitcoin had been poised for a rally. It reached $30,000 in the near term.
The market seems to price in the positive, despite the fact that the tension between Russia and Ukraine appears to be increasing. The two sides seem motivated to stop a complete-blown conflict. This could be a bad thing for global markets.
TA: Why Bitcoin Needs To Clear $43,800 For Hopes of a Fresh Rally| TA: Why Bitcoin Needs To Clear $43,800 For Hopes of a Fresh Rally
Yesterday, Bitcoin saw a low near $42,000, but buying pressure propelled BTC’s price above $44,000 where a lot of ask orders were concentrated. Material Indicators data shows that some of these orders were removed, and others added to higher levels.
Unless bulls continue to display strength or these ask orders are removed/fill, as seen in the chart below, BTC’s price could see a local resistance and a potential short-term pullback.
Bitcoin’s momentum could continue its current trend and reach $50,000 quickly if there is little resistance at $45,600. Bulls may see more gains in this scenario. However, flipping the resistance area into support could be crucial.
Material indicators on the Russia-Ukrainian Situation commentedThe following is available via Twitter:
Although I am unsure if these reports are true or if Putin has a sucker punch strategy in mind, the markets appear to be happy with the reports
Bitcoin could be bullish by the FED policy
QCP Capital is the latest bullish sentiment. claimed BTC’s price saw an increase in resistance as the U.S. published its recent Consumer Price Index (CPI) metrics.
This metric measures inflation in U.S. dollars and has recently been scoring better. It was previously a tailwind to Bitcoin. However, it is now a headwind because it can accelerate the U.S. Federal Reserve’s interest rate rise.
QCP Capital, however, warns of a possible danger not yet recognized by the market: Quantitative tightening (QT).
Although the market is focused on interest rate increases, the primary issue has been Quantitative tightening (QT), or the shrinking Fed’s balance sheet. What will QT look like?
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Depending on how the FED executes its QT policy, either by selling assets or by letting “securities mature without replacing them”, the market could react to the upside or with more bearish price action. QCP Capital thinks a passive QT strategy will prove bullish for Bitcoin as well as the market.