Disinflation or restriction – THE Bitcoin (BTC) price again comes up against resistance around $23,400. The markets are entitled to an event that could presage strong increases. However, the likelihood of a further bull rally also depends on how investors react to comments by US Federal Reserve (FED) Chairman Jerome Powell.
>> Expose yourself to Bitcoin on Binance, 10% fee reduction with this link (commercial link) <<
Inflation down, restrictive rates to be maintained
Bitcoin price rises to $23,350 on Bitfinex today, February 7, 2023. The cryptocurrency is trading at $23,255 at the time of writing this article. Its price is currently registering a daily gain of 2.20%.
Bitcoin climbs back above $23,000 as Jerome Powell talked about inflation today, in a Q&A session with David Rubenstein from theEconomic Club of Washington.
Jerome Powell commented on the recent US jobs report, which revealed that the number of new jobs in January was more than double forecast. These data surprised the markets and the Fed. Jerome Powell said that ” didn’t expect it to be so strong “.
Some investors may worry that these strong jobs numbers will push the Federal Reserve to extend the rate hikebelieving that the US economy can still withstand this quantitative tightening.
In his intervention today, Jerome Powell said that “the disinflationary process has begun”. But while he admitted that the Fed expects a “significant” drop in inflation this year, he also stressed that it will take “not only this year, but also next year” to achieve this. 2% target.
Jerome Powell made it clear that rates will remain at a restrictive level “for a while”, before inflation drops to 2%.
In the next few hours and over the next few days, will investors focus on this gradual decline in inflation, which the Fed Chairman mentioned? Or will they mainly remember the fact that rates will remain at a restrictive level for quite some time?
Bitcoin price: a golden cross blowing a wind of optimism
From a technical point of view, the markets have witnessed an event, which could be the harbinger of strong increases in the short term. The Twitter account Bitcoin Archive shared a chart of Bitcoin price on a daily basis, to show a « Golden Cross – the 50-period simple moving average crosses above the 200-period simple moving average.
Bitcoin Archive specifies that the first golden cross, which took place just after the last bear market, was followed by a 154% increase. If this scenario repeats itself, the price of Bitcoin will then touch the $57,900 in 60 days.
Beyond these optimistic forecasts, for the time being, the price of Bitcoin continues to swing back and forth on either side of the $23,000. The $23,400 remains a crucial level that the cryptocurrency must turn into support, to claim a bullish continuation.
Have optimistic analyst forecasts convinced you to jump on the bitcoin bandwagon? Don’t wait any longer to prepare for the future. Register quickly on the Binance platformand save 10% on your trading fees by following this link (trading link).