During the semi-annual Congressional hearing, the Chairman of the Federal Reserve, Powell, used language indicating interest rate hikes, leading to a sharp rise in the US dollar and a collapse in non-US currencies. As a result, Bitcoin prices are expected to test the 20,000 mark once again.
Fundamentals: "Currency circle" encounters disasters
Fundamentally, the cryptocurrency market continues to be affected by the chain reaction brought about by the collapse of FTX. Several cryptocurrency companies have encountered financial problems, all of which are related to FTX assets, causing significant damage to the cryptocurrency ecosystem and investor confidence. The delayed release of financial reports by the well-known cryptocurrency bank, Silvergate, has also affected market sentiment. It is expected that more related companies will surface, and the impact of the FTX bankruptcy case will not dissipate in the short term.
Secondly, the cryptocurrency platform, Binance, has received special attention from regulatory agencies. As a cryptocurrency "giant," Binance still controls a considerable market share. The collapse of FTX has prompted investors to pay closer attention to Binance's financial situation, hoping for greater transparency, while regulatory agencies continue to question Binance's finances and business practices and have restricted it to avoid falling into the same trap as FTX. The development of the Binance platform plays a crucial role in the stability and recovery of the cryptocurrency market.
Finally, the US Securities and Exchange Commission (SEC) is pushing for cryptocurrency regulatory legislation and urging global regulatory agencies to establish a regulatory framework. In the short term, regulatory trends are unfavorable for the cryptocurrency market, but in the long term, the industry's recovery and development still require the protection of a regulatory system. The next bull market is inevitably related to regulation.
Federal Reserve Interest Rates and the US Dollar
The market continues to track news in the cryptocurrency sector, but the price trend of tokens such as Bitcoin is mainly affected by the performance of the US dollar.
In the past month, US inflation has significantly rebounded, and expectations for the Federal Reserve to extend the time for raising interest rates have increased, but investors are suffering from a lack of official guidance. This week's Powell Congressional hearing and February non-farm payroll data have become the focus of attention.
At the semi-annual Congressional hearing, Federal Reserve Chairman Powell stated that "terminal rates will be higher than previously expected, and interest rate hikes will be accelerated if necessary," causing a stir in the market. Investors may have expected a tough stance from Powell, but did not expect his attitude to be so direct. The US dollar rose sharply, and US and non-US stocks suffered heavy losses.
This testimony will point the direction for the financial market in the next 2-3 weeks. To some extent, the importance of February non-farm payroll data and the March FOMC meeting has been weakened, and they will become detailed annotations of Powell's Congressional hearing. The direction of the US dollar is now clear in the short term, and Bitcoin prices face the risk of further decline after being blocked.
Technically, 21,300 may be difficult to support the decline, and there is a risk of retesting the integer level of 20,000
Bitcoin is maintaining a low-level consolidation, with a key resistance level of 25,000 being blocked twice, confirming this line's strong resistance. After being blocked, the price entered a range-bound consolidation, testing the support level of 21,300 below, but has not been able to break through, with the potential for further downward movement.
As the US dollar strengthens, Bitcoin may retest the level of 21,300 again. Once this level is breached, it will open up the possibility of a decline towards 20,000, with the trend reversing downwards. If the level of 20,000 is not held, there is a risk of a further decline towards 17,000. For Bitcoin to continue its rebound, it needs to effectively break through the resistance of 25,000 and test the range of 28,000-30,000.
BTCUSDT
BTCUSDT.P
BTCUSDT.P
Fundamentals: "Currency circle" encounters disasters
Fundamentally, the cryptocurrency market continues to be affected by the chain reaction brought about by the collapse of FTX. Several cryptocurrency companies have encountered financial problems, all of which are related to FTX assets, causing significant damage to the cryptocurrency ecosystem and investor confidence. The delayed release of financial reports by the well-known cryptocurrency bank, Silvergate, has also affected market sentiment. It is expected that more related companies will surface, and the impact of the FTX bankruptcy case will not dissipate in the short term.
Secondly, the cryptocurrency platform, Binance, has received special attention from regulatory agencies. As a cryptocurrency "giant," Binance still controls a considerable market share. The collapse of FTX has prompted investors to pay closer attention to Binance's financial situation, hoping for greater transparency, while regulatory agencies continue to question Binance's finances and business practices and have restricted it to avoid falling into the same trap as FTX. The development of the Binance platform plays a crucial role in the stability and recovery of the cryptocurrency market.
Finally, the US Securities and Exchange Commission (SEC) is pushing for cryptocurrency regulatory legislation and urging global regulatory agencies to establish a regulatory framework. In the short term, regulatory trends are unfavorable for the cryptocurrency market, but in the long term, the industry's recovery and development still require the protection of a regulatory system. The next bull market is inevitably related to regulation.
Federal Reserve Interest Rates and the US Dollar
The market continues to track news in the cryptocurrency sector, but the price trend of tokens such as Bitcoin is mainly affected by the performance of the US dollar.
In the past month, US inflation has significantly rebounded, and expectations for the Federal Reserve to extend the time for raising interest rates have increased, but investors are suffering from a lack of official guidance. This week's Powell Congressional hearing and February non-farm payroll data have become the focus of attention.
At the semi-annual Congressional hearing, Federal Reserve Chairman Powell stated that "terminal rates will be higher than previously expected, and interest rate hikes will be accelerated if necessary," causing a stir in the market. Investors may have expected a tough stance from Powell, but did not expect his attitude to be so direct. The US dollar rose sharply, and US and non-US stocks suffered heavy losses.
This testimony will point the direction for the financial market in the next 2-3 weeks. To some extent, the importance of February non-farm payroll data and the March FOMC meeting has been weakened, and they will become detailed annotations of Powell's Congressional hearing. The direction of the US dollar is now clear in the short term, and Bitcoin prices face the risk of further decline after being blocked.
Technically, 21,300 may be difficult to support the decline, and there is a risk of retesting the integer level of 20,000
As the US dollar strengthens, Bitcoin may retest the level of 21,300 again. Once this level is breached, it will open up the possibility of a decline towards 20,000, with the trend reversing downwards. If the level of 20,000 is not held, there is a risk of a further decline towards 17,000. For Bitcoin to continue its rebound, it needs to effectively break through the resistance of 25,000 and test the range of 28,000-30,000.
BTCUSDT
BTCUSDT.P
BTCUSDT.P
Trade active
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Trade closed: target reached:
Has reached 20K as scheduled
Trade closed: target reached
Trade closed: target reached
Trade closed: target reached
Trade closed: target reached
