Over the past week, the price of Bitcoin has remained virtually unchanged despite price jumps for seven days. In the first half of the week, the BTC/USDT moved towards the support level. But on Wednesday, having reached the weekly low near the mark of $18,937, the price reversed and went north. Now BTC price has consolidated at around $21,200.
The total market capitalization also repeats the Bitcoin chart and despite the increase by the end of the week, it still has not yet reached $1 trillion. At the moment, this figure is $951B, and Bitcoin itself occupies 43% of the total volume of cryptocurrencies.
Now, few people are ready to take risks, and the reason for this is the rise in the cost of funding after the Fed rate hike, said Chen Limin, CFO and head of trading operations at ICB Fund. In his opinion, the situation could be aggravated by a possible downturn in the US economy and turbulence in commodity markets.
The expert believes that the current bear market is likely to drag on: the growth of cryptocurrency capitalization may not begin until 2024, and before that the market will need to go through “self-purification of the most unstable projects.
The next rally will require the return of capital back into the sector, and this will happen only after the Fed decides to stimulate market activity again, and this is still very far away, Limin believes. He added that the agency will certainly want to make sure that inflation is completely defeated, and only after that will it begin to ease monetary policy again.
As for the forecast for the coming week, technical analysis indicates a continuation of the Bullish correction.
On the daily chart, here we see BTC price breaks above MA20 line, but resisted by the MA50 line. In addition, the signal line of the RSI indicator forms higher lows, while MACD is also trending towards the zero line. The price must overcome the resistance in the form of the upper border of the rectangle, that is, rise above the $22,500 zone in order to open the door for the next bullish trend.