Bitcoin price has been moving sideways for the past few days as the US Federal Reserve increases market jitters. At the time of writing, BTC was trading 2.25% lower at $22,714.56. The lead cryptocurrency has jumped more than 37% in the year to date.
Bitcoin price has been stalling for the past few days amid Fed’s hawkish tone. The largest cryptocurrency jumped slightly higher on Tuesday against the backdrop of Jerome Powell’s speech. Even so, markets purely focused on Powell’s statement that 2023 would be a disinflationary year.
However, traders have started reading between the lines only to realize that there is a chance that the Fed could maintain its interest rate hike throughout 2023. This would be a game changer for riskier assets such as cryptocurrencies and would mean more trading challenges.
In his statement, Fed chair Jerome Powell stated that inflation has begun to ease, though he expects it to be a long haul. Powell cautioned that if the economic data does not cooperate, interest rates could hike more than markets anticipate.
Therefore, with more hikes than anticipated, the financial conditions are likely to be bearish, pulling the BTC price lower, and triggering a stronger US dollar.
Bitcoin Price Analysis
Bitcoin price has slipped more than 4% in the past five days as its total trading volume declined. On the daily chart, the digital asset is moving slightly above the 25-day and 50-day moving average. Its Relative Strength Index (RSI) has declined but remains in the oversold region. Therefore, I expect the Bitcoin price to continue falling as sellers eye the support level at $21,703.50.