Bitcoin Price Prediction As BTC Consolidates To $23,800 – Here’s Where BTC Is Heading Now
Bitcoin’s price has consolidated around $23,800, leaving traders and investors wondering where it is headed next. As the market continues to stabilize, analysts and experts are making predictions about what the future holds for Bitcoin’s price.
In this article, we will take a closer look at the current state of the market and explore various factors that could potentially affect Bitcoin’s price movement in the coming days and weeks.
IMF directors warn against crypto risks
The IMF’s executive board considers the use of crypto-assets a threat to the global monetary system. They warned of potential implications for monetary policy, capital flow management measures and fiscal concerns.
The IMF advises member countries to take appropriate measures to address the growing popularity of cryptocurrencies. The board discourages governments from adopting digital coins as legal tender, as seen with El Salvador and the Central African Republic’s recent embrace of Bitcoin.
Strong macroeconomic policies and credible institutions and monetary policy frameworks are essential, and the fund will continue to offer advice in these areas. The International Monetary Fund (IMF) has warned that the growing use of cryptocurrencies poses a risk to the global monetary system, with the potential to undermine monetary policy, avoid managing capital flows and heighten fiscal concerns.
The IMF also discourages governments from declaring cryptocurrencies as legal tender, despite some countries such as El Salvador and the Central African Republic embracing Bitcoin as an official currency. The IMF’s cautionary stance on cryptocurrency could lead to increased scrutiny and regulation, which could affect the use and value of Bitcoin and other cryptocurrencies.
Bitcoin falls as US PCE inflation data prompts interest rate hike expectations
Bitcoin (BTC) fell back to $23,000 on Friday, shortly after the release of the Personal Consumption Expenditure (PCE) price index which showed a 5.4% year-on-year and 0.6% month-on-month increase in January. The higher-than-expected figure means the Federal Reserve’s fight against rising inflation is likely to continue.
BTC started Friday at around $24,000 and held above $23,800 until the release of the January PCE statistics around 13:30 UST. After its release, its value plummeted, falling as low as $23,000 in just 30 minutes. At the time of writing it is worth $23,217.
Bitcoin’s fall is accompanied by a 3.3% drop in Ethereum (ETH), a 4.6% drop in Cardano (ADA), and a 7.1% drop in Polkadot (DOT). Meanwhile, the NASDAQ and S&P 500 are down 1.81% and 1.25%, respectively.
According to Coinglass data, the fall in the crypto market has resulted in over $110 million in liquidations in the last four hours alone, including $44 million in Bitcoin and $22 million in ETH liquidations. The largest single liquidation was on BitMEX for $7.52 million on an XBTUSD contract.
PCE, rather than the consumer price index, is the Fed’s preferred measure of inflation (CPI). The former excels by tracking how customers’ purchasing patterns develop over time, and the central bank considers it the best predictor of where inflation is headed in the future.
Bitcoin price
As of now, the live price of Bitcoin stands at $24,050, with a trading volume of $31 billion in the last 24 hours. It currently holds the top spot on CoinMarketCap, with a live market cap of $464 billion.
Currently, Bitcoin’s price is $23,873, with a trading volume of $28.6 billion in the last 24 hours. The price of Bitcoin has fallen by almost 2% in the same time frame.
From a technical point of view, Bitcoin is estimated to receive immediate support around the $23,600 level, and breaking below this could push the BTC price to the $23,375 level.
Bitcoin Price Chart – Source: Tradingview
On the bullish front, if Bitcoin succeeds in breaking out above the $24,100 level, it could potentially reach $24,500 or $25,200. However, the RSI and MACD indicators are still in the sell zone, so it is important to keep an eye on the $23,600 to $23,350 range. If the price closes above this range, there may be potential buying opportunities.
The current price of Bitcoin is $23,873, with a 24-hour trading volume of $28.6 billion. It has experienced a drop of almost 2% in the last 24 hours. From a technical point of view, Bitcoin is expected to receive immediate support around the $23,600 level. If it falls below this level, it could potentially push the BTC price to the $23,375 level. The source of the Bitcoin price chart is Tradingview.
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Bitcoin Alternatives
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Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
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