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Investing.com – The rose above the $30,000 level for the first time since June 10, 2022, peaking at $30,143 around 4:15 a.m. on Tuesday, as investors grew more optimistic about the bank’s monetary policy Central American.
At the time of writing, the is trading at $30,000, up 6% over 24 hours and more than 8% over a week.
Bitcoin Rises Despite Fed Rate Hike Expectations
However, no major news seems to explain this acceleration of Bitcoin. On the contrary, the start of the week was the occasion for an increase in Fed rate hike expectations, with a 0.25% increase in the key rate now being the market’s base scenario, with a probability of 75 % or so according to the Investing.com Fed Rate Barometer.
Presumably Bitcoin’s moves have something to do with traders’ positioning ahead of the US CPI and Fed Minutes due on Wednesday. Indeed, these events could change everything when it comes to expectations for the next Fed meeting, and Bitcoin’s rise may be the result of bets on lower-than-expected inflation, or dovish Minutes.
As a backdrop, Bitcoin also seems to benefit from a narrative change due to the banking crisis, with BTC representing for some an alternative to traditional finance. In addition, more and more investors are considering cryptocurrency as a safe haven, while it is less and less correlated to equities, and more and more to Gold.
Just yesterday, analysts from the prestigious firm Bernstein wrote that investors interested in gold should be even more interested in bitcoin.
De-dollarization is also increasingly part of the narrative, further accelerating BTC adoption according to some observers.
When it comes to risk to consider this Tuesday, Bitcoin-positioned traders will have few events to watch other than a speech from Fed member Harker. The wait-and-see attitude could therefore dominate around $30,000 in anticipation of tomorrow’s key events.
Technical thresholds to watch on Bitcoin
Finally, from a graphical point of view, the threshold of $30,000 which was only briefly tested on Tuesday morning remains an immediate resistance.
In the event of a confirmed breach, the next potential hurdle will be the $31,000 threshold.
On the downside, $29,000 / $29,200 is the first potential support, before $28,000, then $27,000 – $26,800, a threshold below which the bullish underlying trend will be challenged.