Bitcoin price rose past $30,000 for the first time in about a year. The crypto has been enjoying support from its status as an alternative safe haven. The focus is now on the US inflation data and Fed meeting minutes for cues on the path of the interest rates.
What’s driving the market?
Following the banking crisis that threatened to spread globally, more investors have been shying away from the conventional investments. This is one of the factors that have boosted bitcoin and cryptocurrencies in general. Amid the persistent recession concerns, the leading cryptocurrency has continued to benefit from its status as an alternative safe haven.
At the same time, bets that the Fed will further ease on its aggressive interest rate hikes have continued to boost bitcoin price and the broader crypto industry. The environment of high interest rates had the crypto’s value drop by close to 70%.
Fast forward to 2023, and BTC/USD has been up by about 85% year-to-date. With the rallyign recorded on Tuesday, bitcoin’s market cap was up by 4.33% at $588.062 billion. On a broader level, the total crypto market cap was up by 3.02% at $1.24 trillion. At the same time, the total crypto market volume increased by 21.93% at $46.50 billion.
In the ensuing sessions, the focus will be on the US CPI data and Fed meeting minutes set for release on Wednesday. The economic events will offer further cues on the path of interest rates in the largest economy. Signs of a less hawkish Fed will further support bitcoin price.
Bitcoin price prediction
BTC/USD rallied past the psychologically crucial zone of 30,000 for the first time in close to a year. On Tuesday, it rose to an intraday high of of 30,451.36, a level last hit on 9th June 2022.
The surge comes after the crypto remained range bound for about three weeks. Indeed, during this period, there were several failed attempts by the bulls to rally to 30,000.
A look at its daily chart shows that the bulls are still in control as bitcoin price continues to trade above the 25 and 50-day EMAs. Besides, it is at the periphery of the overbought territory with an RSI of 70.
In the short term, a corrective pullback will likely maintain the resistance level at 31,234.75. Even so, the support level at 27,682.94, which is along the 25-day EMA, is worth watching.
Past this range, the next target will be a fresh one-year high at 33,010.65. This bullish thesis remains valid for as long as bitcoin price remains steady above the 50-day EMA at 26,301.69.