Bitcoin price: Consumer confidence may be the crypto’s short term fuel

Bitcoin price continues to find support in the optimism that the worst of the crypto winter is over. It will be interesting to see how the crypto reacts to the consumer confidence data set for release on Tuesday. As at the time of writing, it was down by 0.68% at $23,396.81.

What’s driving the market?

Since the beginning of 2023, bitcoin price has rallied by over 40%. During the same period, major altcoins such as ethereum, solana, and cardano increased in value by 36%, 129%, and 48% respectively.  

Investors entered 2023 with hopes that the worst of the crypto winter is over. This explains why, despite the uncertainties in the financial markets, bitcoin price has been trading above the psychologically crucial level of $20,000 for over a month now.

In the ensuing sessions, the broader crypto market may be impacted by the US consumer confidence figures set for release on Tuesday. Analysts expect it to have improved in February from 107.1 to 108.5.

Higher-than-expected consumer confidence numbers may ease recession concerns and improve the mood in the crypto industry and the broader financial markets. Such an environment will further boost bitcoin price.

Bitcoin price prediction

On Monday, BTC/USD eased on the subtle recovery recorded over the weekend. Over a span of one week, bitcoin price has dropped by about 8%.

Even so, bitcoin price has continued to trade above the 50 and 200-day EMAs. In fact, a week and a half ago, the crypto formed a golden cross by the 50-day EMA crossing the 200-day EMA to the upside. These technical indicators, coupled with the fundamentals, signal that the bulls will remain in control at least in the short term. The recent decline appears to be more of a consolidation pattern rather than a trend reversal.

In particular, I expect the crypto to hold steady above 21,500 in coming weeks. Nonetheless, bitcoin price will likely be subject to curbed gains as uncertainties regarding the extent of the Fed’s hawkish tilt continues to influence financial markets. As such, the zone around 25,050 may remain a steady resistance level in the short term. In the ensuing sessions, the range between 22,500 and 24,000 will be worth watching.

bitcoin price
bitcoin price

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