Last week, the world’s largest cryptocurrency made a strong move to $25,000, however, it facing strong resistance at those levels. As of press time, BTC is trading 1% down at $24,615 and a market cap of $475 billion.
Bloomberg’s senior commodity strategist Mike McGlone explains how the current technical setup for Bitcoin supports tactical shorts. During the entire Fed tightening season, Bitcoin’s 50-week moving average has never crossed under its 200-week moving average. However, the possibility of that happening now has come closer.
However, if the BTC price manages to swing above $25,000, it would signal a divergent strength against the Fed’s decisions. The CPI data for January 2023 continues to suggest that inflation remains sticky and that Fed could continue to raise interest rates going ahead. In his latest tweet, Mike McGlone wrote:
Bitcoin, Crypto and Stock Markets
Bitcoin and the broader cryptocurrency market rallied with the impetus provided by the surge on Wall Street. In fact, the crypto market has managed to outpace the traditional markets in 2023.
XRP Price Analysis: The Factors Holding the Crypto Back from a Bullish RunBitcoin News BLUR Price Prediction: Will Steady Recovery In Blur Token Surpass $1.5 Mark?Bitcoin News Conflux Coin Price Rallied 500% In A week; Will It Go Higher?Bitcoin News Sandbox Price Poised for 58% Rally If These Factors Are MetBitcoin News Solana Price Jumps 8% today; Is It Ready To Resume Prior Recovery?Bitcoin News
Since the beginning of 2023, the S&P 500 is up by 6% while the Nasdaq 100 is up by 13%. On the other hand, the MVIS CryptoCompare Digital Assets 100 Index of leading tokens is up 40%.
On the other hand, Hong Kong is planning to relax rules and allow retail traders to trade larger cryptocurrencies like Bitcoin and Ethereum. This would lead to increased liquidity in the crypto space going ahead. The retail backing has so far helped BTC surge by over 50% since the start of 2023. JPMorgan Chase & Co. strategist Nikolaos Panigirtzoglou said:
“This positive retail impulse year-to-date is naturally more dominant in crypto given the absence of institutional investors at the moment”.
