Bitcoin Price Prediction
The BTC/USD ended the day at $56,938.0, having reached a high of $59,174.0 and a low of $55,940.0.BTC/USD broke its 3-day bullish streak and reversed its course on Tuesday after hawkish comments from the chairman of the US central bank. The market saw a decline in the prices of leading cryptocurrency after 3-days of gains on Tuesday after the US Federal Reserve Chair Jerome Powell warned that the risk of higher inflation has increased and signalled that the Fed would consider accelerating the decline of its asset acquisition policies that have expanded the markets for risky assets.
Some analysts stated that bitcoin was trading more like a risky asset than an inflation hedge and a faster Fed taper along with increased rate hike expectations was a piece of bad news for bitcoin, which triggered sale in the leading cryptocurrency on Tuesday. The comments from the Fed chair expressed that inflation was no longer transitory and that to mitigate its effect, Fed would move more quickly to tighten monetary policy, which proved to be negative for speculative assets, including bitcoin.
On the other hand, the Assistant Governor of the Central Bank of Indonesia, Juda Agung, said that CBDC would be part of an effort to address crypto in financial transactions. The central bank of Indonesia has said that the digital versions of national currencies, CBDC, were launched in acknowledgment to growing cryptocurrency enactment would be an essential tool for fighting crypto.
The central bank of Indonesia was considering launching a digital rupiah to fight against cryptocurrencies like Bitcoin. These comments from assistant governor Juda Agung added further pressure on BTC/USD on Tuesday. Meanwhile, the Grayscale Bitcoin Trust operator issued a letter to the Secretary of the SEC, Venessa Countryman, and argued that the SEC was wrong to reject spot bitcoin ETFs since it has now approved three bitcoin futures ETFs, one each from VanEck, Valkyrie, and ProShares. These comments from the Grayscale operator kept the losses in BTC/USD limited for the day.
BTC/USD Intraday Technical Levels
Pivot Point: 57350.7
BTC/USD - Technical Outlook
Technically, the leading cryptocurrency, Bitcoin, is exhibiting no change in its technical outlook. The BTC/USD coin is trading slightly lower at 56,748 after reaching a high of 58,849 earlier today. It’s consolidating in a wide trading range of 58,849–55,840, and a breakout of that range will determine further trends in the market.
A bullish breakout of 58,849 exposes the BTC towards 60,611 and 62,115 levels. While the breakout of a support level at 55,840 exposes it towards 54,079 and 51,650. On Wednesday, the bearish bias dominates below the pivot point resistance level of 57,350 and vice versa; all the best!
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