Third attempt – The price of Bitcoin (BTC) benefits from the announcement of the US Federal Reserve (FED), and is again facing resistance, which jeopardizes bullish continuity in the short term.
FED Confirms, Bitcoin Price Approaches $24,000
Bitcoin price rises to $23,795 on Bitfinex today, 1er February 2023. The cryptocurrency is trading at $23,709 at the time of writing this article. Its price is currently registering a daily gain of 2.48%.
The price of Bitcoin therefore reattacks levels near $24,000, after the US Federal Reserve confirmed investor expectations, with a rise of 25 basis points federal funds rate.
This is the eighth increase that the FED has operated in a year. In its announcement, the FED acknowledges that “inflation has come down somewhat”, but it ” stay high “.
And while the institution has certainly reduced the magnitude of the increases, the markets should expect around two more bearings rates this year, according to Federal Reserve Chairman Jerome Powell.
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Will the third attack be the one, or will Bitcoin price fall back below $23,000?
The price of Bitcoin therefore returns to around $23,750, pushed by the Fed’s announcement. The cryptocurrency encountered resistance around this level, two times during the month of January (blue circle).
Will the bulls be able to break through this resistance zone this time around? In case of rejection, the $23,400 remain a key level to monitor. Trader Rekt Capital pointed to the fact that Bitcoin price closed January below this level.
According to the trader, until Bitcoin price is able to turn that $23,400 into support, then it technically remains “inside the $20,000-$23,400 range for now.”
The last two attacks of $23,750 ended in rejection, which pushed Bitcoin price back below $23,000. The cryptocurrency had then found support around the $22,760.
Could the almost 40% rally in January continue in February for the price of Bitcoin? The reaction of the markets to the Fed’s announcement still raises questions, because the increases have certainly diminished, but other increases are already on the program this year.
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