Bitcoin, the world’s first cryptocurrency, is facing a 2% drop over 24 hours while he trades at around $29,180 this Tuesday morning. The inability to sustain higher price levels may have influenced aggressive bearish sentiment, leading to short positions as short-term bullish traders chose to secure their profits.
In the midst of market fluctuations, two important factors weigh on the performance of BTC : there pending complaint against Binance and the concerns about a possible rate hike. As these uncertainties loom, investors are watching market dynamics closely to make informed decisions.
Complaint against Binance and potential interest rate hike weighs on BTC
The fall in the price of BTC is not fully explained, but it coincides with a Wall Street Journal reportl which has raised concerns among investors regarding Binance. The article highlighted statements made by Binance CEO Changpeng “CZ” Zhao in 2019, which have raised questions about potential “wash trading” activities by Binance affiliates during the launch of its American commercial branch, which led to suspicions about exaggerated volumes of transactions.
Being the largest cryptocurrency exchange in the world, Binance is already facing legal challenges, having been sued by the Securities and Exchange Commission (SEC) last month. The platform is currently under investigation by the Ministry of Justice, which could lead to a settlement decree. The investigation focuses on the potential violations related to anti-money laundering and sanctions evasionwith potential implications for Binance’s future operations.
In addition, investors are closely watching the outcome of the Federal Reserve’s two-day meeting for hints on possible interest rate hikes. Repeated interest rate hikes have contributed to lower Bitcoin prices, and market participants are cautious about the Fed’s future moves given lingering recession concerns. At the end of the Federal Reserve meeting, Bitcoin price is expected to continue to fluctuate within a tight range.
The market has already priced in expectations of a 25 basis point rate hike by the Fed this week and closely monitors signals regarding future rate action. Until there is more data and confidence in inflation trends, Fed rate decisions will likely remain uncertain, which could impact Bitcoin’s ability to breach the $31,500 level in the near term. Investors will therefore closely analyze Fed statements for any potential medium-term impact on the cryptocurrency market.
Bitcoin Halving Will Happen in Less Than 40,000 Blocks
Monday, the Bitcoin network has reached a crucial milestone by reaching the 800,000 blockmarking a significant turning point in the evolution of the world’s largest cryptocurrency. According to bitcoinblockhalf.comthis step also means that the next Bitcoin halving event, which is expected to take place at block 840,000and which will halve the income of miners, should now occur in less than nine months at the current rate.
Historical data suggests that theBitcoin halvings played a role in price increases, but it is also crucial to consider that the cryptocurrency market is very complex and subject to multiple influencing factors. As a result, the precise impact of the reward block halving on the price of BTC remains unclear and can be influenced by various market dynamics.
Bitcoin Price Prediction
Bitcoin, the main cryptocurrency, has experienced a sharp decline, approaching the $28,850 level. However, a recent doji candle close just above this critical level indicates a potential weakening of the bearish bias. Moreover, the presence of both a doji candle and a spinning top candle around the $28,800 level further supports the possibility of an uptrend or an upside correction.
Finally, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators remain in the oversold zone, adding to the potential for a bullish reversal. Therefore, it is essential to closely monitor the level of 28,850 $, as a break above could lead Bitcoin to target an immediate resistance level of $29,500.
This resistance level lines up with the 50-day exponential moving average and was previously a significant support and double bottom level, dating back to July 24th. As such, it is likely to act as a formidable resistance. If Bitcoin successfully breaks above the $29,500 level, the next target could be around $29,900 or $30,300. Traders and investors should remain vigilant for further price movements to gauge the potential for a bullish breakout or further bearish pressure on Bitcoin’s price.
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com