This Wednesday, Bitcoin (BTC / USD) is experiencing a notable increase, registering an increase of 2.10% over 24 hours and now trading at a promising price of $29,780. This uptrend seems to be supported by key macroeconomic influences, including the upcoming Consumer Price Index report and the Federal Reserve’s upcoming interest rate decision. Moreover, the financial landscape is filled with optimism as Bitcoin ETF approval hopes are intensifying, fueling the rise in cryptocurrency prices.
BTC Ahead of Consumer Price Index Report and Fed Interest Rate Decision
The current price of BTC is closely linked to major economic trends. Looking at past patterns, we can see that BTC prices tend to rise during times of monetary expansion, such as in 2021. next consumer price index (CPI) report for July is expected to exceed the Fed’s 2% target, reaching around 3.3%, and this reinforces concerns about inflation, although inflation is trending down.
There is also a sense of anticipation in the air as the upcoming Federal Open Market Committee (FOMC) interest rate decision September 20. This move is seen as an attempt by the Federal Reserve to solve the inflation problem. It could potentially provide price support for BTC during this period of increased inflation.
However, uncertainties remain and investors could initially turn to more traditional safe havens if economic conditions were to deteriorate.
Optimism Over Bitcoin ETF Approval Drives Prices Higher
There current bitcoin price surge (BTC) is driven by optimism surrounding exchange-traded fund (ETF) approval on spot BTC. Cathie Wood, CEO of Ark Invest, which filed a filing, and Mike Novogratz, CEO of Galaxy Digital, are both optimistic about the approval.
Wood thinks the Securities and Exchange Commission (SEC) can approve multiple ETFs at once, while Novogratz, citing information from sources at BlackRock and Invesco, thinks it’s only a matter of time before one of eight pending BTC ETF applications is approved by the SEC in the next six months.
BlackRock’s participation in this move was fundamental, as the company’s request for a place in the Bitcoin fund in June boosted investor confidence. These ETFs will offer individual and institutional traders a way to gain exposure to Bitcoin without having to directly engage in cryptocurrency exchanges.
With increased commitment from key industry players through their resolve and statements, and hopeful anticipation, BTC price is currently responding favorably to the possibility of ETF approval by rising 2% today.
Bitcoin Price Prediction
Se currently trading around $29,780Bitcoin is showing a slight bullish tilt, but faces challenges crossing the $30,200 threshold, as evidenced by the price chart on the four-hour time frame. This resistance is accentuated by technical formations pointing to strengthening bearish sentiment. And, notable indicators, such as the RSI and the MACD, are already approaching the overbought zonesuggesting a potential weakening of the current uptrend.
Bitcoin has incidentally reached the 23.6% Fibonacci retracement at $29,800 and could target the 38.2% level at $29,600. If it went below, thee BTC could drop again towards $29,250. Conversely, if it overcomes the resistance of $30,200, BTC could then approach the range of $30,600 to $31,000. We will therefore retain that the $29,800-$30,200 area is critical, with potential changes that may trigger a bearish trajectory for BTC.
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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