Bitcoin price traded in the green on Thursday as Wall Street rose. Granted, it was on consolidation mode for the third session in a row. Optimism over easing inflation continues to offer support to cryptocurrencies.
As has been the case in past months, cryptocurrencies and BTC in particular tend to move in tandem with US stocks. On Thursday, the Labor Department reported that US producer prices unexpectedly dropped in March. This comes after the CPI data that also added to optimism over easing inflation.
Subsequently, indexes like the tech-heavy Nasdaq Composite rose by 2%. An environment of lower interest rates tends to be bullish for cryptocurrencies. In the ensuing sessions, the earnings season and Fed meeting will be at the back of investors’ minds.
BTC/USD price forecast
In 2022, bitcoin price dropped by about 65% amid high inflation, an environment of high interest rates, and overall risk-off mood. Fast forward to 2023 and the asset is up by about 85% year to date (YTD). In fact, it hit the psychologically crucial zone of 30,000 for the first time in close to a year.
On Thursday, BTC/USD hit a fresh one-year high at 30,697.30. As at the time of writing, it was up by 1.67% at 30,409.63. Amid the ongoing bull run, it is a periphery of the overbought territory with an RSI of 70.
In the ensuing sessions, I expect bitcoin price to continue finding support along the 25-day EMA at 28,103.73. On the upside, 31,234.75 remains a resistance level worth watching. The bulls will need to gather enough momentum to break this resistance in order to rally further to its next target at 32,508.67.