Bitcoin has been on a rally this week but dipped to the $43,000 mark after failing to cross the resistance at $45,000 level. $45,000 does not hold historical importance as BTC has breached it several times in the past.
The abrupt slip can be attributed to the Federal Reserve Chair Jerome Powell confirming plans to go ahead with the US Central Bank’s plans to raise interest rates this month. He said the first hike of 0.25% is still expected at the Fed’s next meeting. But, the Chair added that they can’t know how large or persistent the effects of the Ukraine war will be on the economy.
Despite the decline in the price of Bitcoin, Katie Stockton, an analyst at Fairlead Strategies believes prices will increase and head towards $50,000. She highlighted that short-term gauges are pointing higher. However, risk is heightened in this environment.
Data shows that buyers remain active at lower support levels, particularly at the $40,000 mark. Its said pullback could stabilize on intraday charts. There was a noted stronger resistance at$46,000. This had capped the price rally last month. Experts outline that buyers need to make a decisive break above resistance to reverse the three-month-long downtrend.