Bitcoin price has risen by close to 40% since the beginning of 2023. Notably, the rallying has largely been fueled by high expectations that the Federal Reserve will ease on its aggressive interest rate hikes.
Indeed, Goldman Sachs has ranked it as the best performing financial asset year-to-date (YTD). Based on the investment bank’s report, the crypto has outperformed the likes of gold and S&P 500 with a risk-adjusted ratio of 3:1 and YTD return of 27%.
Even with the positive sentiment, downside risks remain. In particular, recession concerns have been curbing bitcoin price gains. Besides, investors are keen on the Fed meeting set for the coming week. Ahead of this crucial economic event, the crypto may be subject to profit taking after hitting a five-month high earlier in the week.
Bitcoin price forecast
In a recent article, I point out that the bulls have an opportunity to push bitcoin price higher in coming weeks. In particular, I forecast that the psychologically crucial zone of 25,000 is just a couple of sessions or weeks away.
However, I was quick to add that ahead of the Fed interest rate decision set for release in the coming week, the aforementioned zone may remain evasive for a while longer. True to the thesis, BTC/USD rallied to a fresh 5-month high on Wednesday. Nonetheless, it failed to gather enough bullish momentum to surge towards the target at 25,000.
As at the time of writing, bitcoin price was down by 0.07% at 22,997.08. Even so, it appears set to record its fourth straight week of gains. Besides, it continues to trade above the 25 and 50-day EMAs; further indicating that the bulls are still in control.
Into the weekend, the range between 22,000 and 23,500 will be worth watching. Below the range’s lower range, BTC/USD may find support along the 25-day EMA at 20,783.12.