Bitcoin
Bitcoin Price Forecast Ahead of Macroeconomic Data Releases This Week
Bitcoin price has been consolidating for the past few weeks, trading between $29,000 and $26,500. Bitcoin, the largest cryptocurrency by market cap, displayed a stellar performance in the first quarter of 2023, climbing more than 71% in the year to date. Even so, BTC seems to be stalling in the $28,000 level, slightly below its 10-month high.
Fundamentals
Bitcoin price has been range-bound for the past few weeks as it remains clueless about the next directional move. BTC’s total market cap climbed by 1.48% in the past day to $548 billion, while the total volume of the digital asset traded in the same period jumped by more than 26%.
The global crypto market was flashing green earlier on Monday after the long weekend ahead of the US key inflation data. Statistics by Coinmarketcap show that the global crypto market cap has increased by 1.10% over the last day to $1.19 trillion, while the total crypto market volume increased by 4.77%. Bitcoin’s dominance has also inched higher in the past 24 hours.
US Treasury yields slipped after data released last week hinted at a slowdown in job growth. The yield on the benchmark 10-year Treasury note dipped to 3.381%, while the 30-year Treasury bond declined to 3.581%. Data released by the Labor Department last week showed that nonfarm payrolls increased by 236,000 in March, falling in line with market expectations, but down from 326,000 new hires in February.
Markets have now shifted their focus to the US Consumer Price Index (CPI) data due on Wednesday. Analysts forecast a decline in the inflation rate for March. The Federal Open Market Committee (FOMC) will release minutes from its latest monetary policy meeting on the same day. Markets are weighing the prospects of further monetary policy tightening and a potential US recession off the back of the recent banking crisis.
Bitcoin Price Outlook
Bitcoin price has been highly consolidating for the past few weeks, trading between its 10-month high at $29,184 and $26,500. At press time, BTC was trading at $28,329.35, following an intraday high of $28,425.83.
The coin has managed to maintain its position above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) is currently at 61, while the Moving Average Convergence Divergence (MACD) indicator remains bearish.
Therefore, I expect the Bitcoin price to continue trading between the tight range of $29,000 and $27,520 in the short term as it struggles to find direction. A move past the resistance at $28,945.30 will have buyers eyeing the $30,000 level. However, a flip below the crucial support level at $26,500 will invalidate the bullish view.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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