Market Analysis: Why the Price of Bitcoin Rose to USD 30k
FXOpen
Yesterday, the BTC price topped USD 30k for the first time since April. There may be several reasons, among them:
→ Powell's speech to lawmakers on Capitol Hill yesterday. The Fed chief said further rate hikes are a pretty good guess as to where the Fed is heading. The dollar index reacted to his hawkish statement with a fall. At the same time, it pushed up the bitcoin rate against the dollar. In addition, Powell paid tribute to cryptocurrencies, saying that they are stable and adding that the Fed views stablecoins as a form of money;
→ after the negative news background related to the Fed lawsuits, positive events followed, indicating the interest of institutional firms in the US in the crypto market. For example, the BlackRock fund (more than USD 8 trillion under management) filed an application last week to launch an ETF based on bitcoin. And a new cryptocurrency exchange, EDX Markets, backed by Citadel Securities, Fidelity and Schwab, has gone live;
→ change in the balance of supply and demand in the market after the price of bitcoin breaks through the psychological level of USD 25k.
The BTC/USD chart shows that the rise in the price of bitcoin this week met resistance (1) from the upper line of the descending channel, shown in red. But after yesterday's violent rally, the price reached a resistance block, which is formed by:
- the psychological level of USD 30k for bitcoin;
- line (2) parallel channel.
It is possible that in the wake of the hype, the bulls will attack the high of the year, but at the same time, their success increases the likelihood of a correction.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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