Bitcoin price climbed in Wednesday’s trading session amid Powell’s dovish tone. At the time of writing, BTC had jumped more than 4% and was trading above the critical support at $17,000. Its total market cap rose by 4% while the total volume of BTC traded in the last 24 hours was up by 18%. Bitcoin was among the top performers in the cryptocurrency market in Wednesday’s session.
Crypto Market Stance
According to data by CoinMarketCap, the global crypto market cap rose by 3% in the last 24 hours. The total crypto volume increased by more than 15% over the last day. Bitcoin’s dominance also improved over the last day.
The jump in Bitcoin price was boosted by Powell’s dovish tone later Wednesday. Fed chair, Jay Powell hinted that the Federal Reserve will slow the pace of interest rate hikes in the next month. However, he reiterated that the US Central Bank has a long way to go in fighting inflation.
Bitcoin price hit an intraday of $17,162 before pulling back. This was its highest level in three weeks. However, analysts have warned that the rally might not be sustained, and the bounce might be temporary. investors have continued weighing the fallout of FTX, the world’s second-largest cryptocurrency exchange.
Investors’ confidence in digital currencies has been hammered on the back of the collapse of the crypto exchange FTX. Earlier this week, crypto lender, and exchange BlockFi filed for Chapter 11 bankruptcy protection in the United States amid contagion fears from the FTX fallout.
Bitcoin Price Analysis
The 4-hour chart shows that the Bitcoin price has been under intense pressure for the past few weeks. The world’s most valued digital asset has plunged more than 70% since the start of the year and more than 43% in the past 6 months. It has managed to move above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is neutral at 57.
Therefore, the Bitcoin price is likely to pull back and continue a bearish run in the near term. If this happens, sellers will be eyeing the critical support level at $16,000. However, a move past the resistance level at $17,574 will invalidate this view.