There significant drop today from more than 4% of the price of Bitcoin is causing concern among investors and traders. As the world’s leading cryptocurrency, Bitcoin’s price movements often have a significant impact on the broader market.
The question now is whether Bitcoin can find sufficient support to prevent further declines and stabilize above the crucial $24,000 level. In this Bitcoin price prediction, we will analyze the current market conditions and key factors that could influence the future direction of BTC.
Fed pauses interest rate hike after ten straight hikes
After one series of ten consecutive rate hikes since March 2022, the US Federal Reserve has chosen to keep the federal funds rate at its current level this month. The decision comes in the light of indications pointing to a slight recovery in economic activity, as highlighted in the FOMC statement, which also recognizes the weight of job creation and the low unemployment rate.
The FOMC’s ongoing objective remains to bringing inflation back to the target range of 2-3%, as stated in the Fed statement. The latest consumer price index (CPI) data, released this week by the US Bureau of Labor Statistics, shows a moderation in inflation, with the annual rate falling to 4%.
To achieve the 2% inflation and full employment targets, the FOMC chose to keep the federal funds rate target range between 5 and 5 1/4%. Following this announcement, the four main Wall Street stock indices experienced declines, with a slight drop in the cryptocurrency market. Conversely, spot gold and silver prices rose in response to the Fed’s latest statement.
At Jerome Powell’s press conference after the FOMC meeting, he said: “Almost everyone on the committee expected that it would be appropriate to raise interest rates a little more. ‘by the end of the year.’
Miami Mayor Francis Suarez Enters Presidential Race With Bitcoin Backing
THE Miami Mayor Francis Suarez a bitcoin advocate, officially signed up for run for president of the United States with the Federal Election Commission. Suárez, known for supporting Bitcoinwish turning Miami into a bitcoin hub prosperous and even began paying himself his salary in Bitcoin. With stiff competition from high-profile competitors like former President Donald Trump and Florida Governor Ron DeSantis, Suarez, twice elected in Miami, may struggle to gain national recognition.
In a 2021 interview for CoinDesk, Suarez had praised Bitcoin’s potential to democratize wealth and mentioned the possibility of the use of Bitcoin for the payment of taxes and the remuneration of municipal employees. He has also launched MiamiCoin (MIA), based on the Stacks blockchainbelieving that it could provide regular BTC incentives to Miami residents in the future.
Although MIA and another cities token, NYCCoin, were suspended due to liquidity issues on OKCoin in March, Suarez remains steadfast in his confidence in cryptocurrencies: he stressed that its confidence in the underlying technology remains intact despite falling prices.
Bitcoin Price Prediction
Bitcoin is currently trading at $24,850, marking a decline of more than 4% over 24 hours. The drop comes on the heels of the Federal Reserve’s statement and a turbulent week for the cryptocurrency market, causing the price of Bitcoin to drop below the $25,000 mark for the first time since mid-March.
From a technical point of view, when examining the four-hour deadline, it appears that Bitcoin has already established a double-bottom support level at around $25,600. Additionally, it has formed a bearish candlestick pattern known as the “three black crows”, indicating a potential continuation of the downward trend.
The next level of support to watch is around $24,350 as indicated by the MACD and RSI indicators, which are in the sell zone. Therefore, it is essential to closely monitor the $25,000 level, as a close below could lead to further downward movement. At the same time, a close above $25,000 may trigger a bullish retracement towards the $25,600 or $26,200 levels.
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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.
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