The change in the Fed's monetary policy is the basic factor for Bitcoin to strengthen again
The cryptocurrencies led by Bitcoin (BTCUSD) are all denominated in U.S. dollars. If the U.S. dollar is strong, the token price is weak, and if the U.S. dollar is weak, the token is stronger. The trend of the U.S. dollar is mainly affected by changes in the Federal Reserve's monetary policy and market sentiment.
In 2022, affected by strong inflation factors, the Federal Reserve aggressively raised interest rates, which greatly promoted the upward trend of the US dollar, and risk assets such as cryptocurrencies and US stocks continued to weaken.Near the end of the year, U.S. inflation fell significantly, proving that the decline in energy prices and the Fed's interest rate hike have achieved substantial results, and the Fed's expectation of slowing the pace of interest rate increases has become stronger.
The cryptocurrency market, which has fallen to the bottom, has finally ushered in the long-lost good news, and swept away the haze of FTX bankruptcy spreading to the entire industry, Bitcoin led the rebound.
Entering April, heavy inflation data such as U.S. CPI, PPI, retail sales, and PCE price index continued to show a downward trend, indicating that U.S. inflation continued to decline, and the Fed did not need to maintain interest rates at such a high level.The weakening expectation of interest rate increases continues to drive the price of Bitcoin up.In the sudden banking crisis in the United States and Europe in March, investors expressed concerns about the traditional banking industry and turned their attention to the cryptocurrency market with the concept of “decentralization”. Together with gold, cryptocurrencies have assumed the role of safe-haven assets, which has promoted the recovery of token prices.
The continued weakening of the US dollar continued to push the price of tokens, and finally Bitcoin stood at the 30,000 mark, which played a good role in boosting the trend and market psychology. In the next step, Bitcoin's stability here will help establish the bottom of the trend and continue to climb upward.
Bitcoin technical trend: short-term strength is conducive to continued upward exploration
The Bitcoin price has basically opened up upward space, and the reference price is on the first line of 30,000 US dollars. If it remains stable here, it is expected to continue to look at 32,000 and 35,000, and fall back below 29,000. Pay attention to short-term adjustments, and if you break below 25,000, you must be wary of a larger pullback or even a decline, and support 20,000 below.
Strategically, it is advisable to continue to have a low absorption between 25,000 and 28,000. As the overall situation is conducive to Bitcoin, wait patiently for the development of the trend.
The cryptocurrencies led by Bitcoin (BTCUSD) are all denominated in U.S. dollars. If the U.S. dollar is strong, the token price is weak, and if the U.S. dollar is weak, the token is stronger. The trend of the U.S. dollar is mainly affected by changes in the Federal Reserve's monetary policy and market sentiment.
In 2022, affected by strong inflation factors, the Federal Reserve aggressively raised interest rates, which greatly promoted the upward trend of the US dollar, and risk assets such as cryptocurrencies and US stocks continued to weaken.Near the end of the year, U.S. inflation fell significantly, proving that the decline in energy prices and the Fed's interest rate hike have achieved substantial results, and the Fed's expectation of slowing the pace of interest rate increases has become stronger.
The cryptocurrency market, which has fallen to the bottom, has finally ushered in the long-lost good news, and swept away the haze of FTX bankruptcy spreading to the entire industry, Bitcoin led the rebound.
Entering April, heavy inflation data such as U.S. CPI, PPI, retail sales, and PCE price index continued to show a downward trend, indicating that U.S. inflation continued to decline, and the Fed did not need to maintain interest rates at such a high level.The weakening expectation of interest rate increases continues to drive the price of Bitcoin up.In the sudden banking crisis in the United States and Europe in March, investors expressed concerns about the traditional banking industry and turned their attention to the cryptocurrency market with the concept of “decentralization”. Together with gold, cryptocurrencies have assumed the role of safe-haven assets, which has promoted the recovery of token prices.
The continued weakening of the US dollar continued to push the price of tokens, and finally Bitcoin stood at the 30,000 mark, which played a good role in boosting the trend and market psychology. In the next step, Bitcoin's stability here will help establish the bottom of the trend and continue to climb upward.
Bitcoin technical trend: short-term strength is conducive to continued upward exploration
The Bitcoin price has basically opened up upward space, and the reference price is on the first line of 30,000 US dollars. If it remains stable here, it is expected to continue to look at 32,000 and 35,000, and fall back below 29,000. Pay attention to short-term adjustments, and if you break below 25,000, you must be wary of a larger pullback or even a decline, and support 20,000 below.
Strategically, it is advisable to continue to have a low absorption between 25,000 and 28,000. As the overall situation is conducive to Bitcoin, wait patiently for the development of the trend.
Comment:
Stepping back is the opportunity to enter
