Bitcoin Breaks Above $17K: A New Ray of Light for the Crypto Market?
TL; DR breakdown
- Bitcoin breaks above $17k.
- FTX collapse results in market battles.
- Fed Chair Jerome Powell’s dovish comments affect the crypto market.
Bulls are still trying to take control of the market despite bears dragging the price down to a record low of $16,939.14. Despite BTC’s attempts to reverse the downward market transaction. BTC has experienced a high cost of $17,116.04. While waiting for a solid fundamental to trigger a breakout, investors have seen a new ray of light for the crypto market. Nevertheless, they hope that it will likely be an outstanding trading opportunity when it breaks out of this area.
Market struggles caused by FTX collapse affect Bitcoin price
As major coins Ethereum and Solana trade with negative trends of 1.33% and 0.97% respectively, almost the entire cryptocurrency market is in the red, according to coin360. The FTX collapse has caused many investors to start doubting the safety of cryptocurrencies as an investment. The market has been dramatically affected by their unwillingness to participate in the bitcoin sector, resulting in a carry pattern.
In addition, unexpectedly good jobs numbers were a boon for investors and are seen as one of the main factors in limiting currency depreciation.
However, news that businesses added 263,000 jobs in November, significantly more than the 200,000 expected, caused the dollar’s value modestly. Meanwhile, the declines were temporary as they hit a three-month low amid a dovish stance.
Fed Chair Jerome Powell’s dovish comments affect the crypto market
However, the cryptocurrency market has proven investors wrong as BTC breaks above $17k, promising a possible reversal for Bitcoin among other cryptocurrencies that had fallen significantly. Some argue that Fed Chairman Jerome Powell’s dovish comments, which suggested the central bank will slow down interest rates, are to blame for this optimistic trend.
As investors expect the Fed to hit its peak interest rate in the early months of next year, the US dollar is on course for its worst monthly loss since September 2010.
As opposed to the 20% chance that interest rates will rise by another 75 basis points, markets are pricing in an 80% chance that the Fed will raise rates by 50 basis points at its upcoming meeting.
Current Bitcoin Price
BTC is currently trading at $16,956.73 on CoinMarketCap, with a market cap of $356,091,593,882 and a 24-hour trading volume of $15,407,393,448. In the market there are 19,223,531.00 BTC in circulation. BTC is still ranked first by CoinMarketCap.
Source: Trade view
While the candles are trading on the upper band, the bulls, seeking to control the market, have caused the Bollinger bands to form a narrow pattern. If the BTC price can overcome the resistance level of $17245, it can rise to the $17500 level; but if it fails, the price is expected to move in the opposite direction, towards the support level.
Other technical indicators show that the Relative Strength Index (RSI) indicator is rising, indicating that buyers are in command. The MACD indicator is increasing and may soon cross above the signal line, triggering further buying pressure in the market.
Is It Time To Invest In Bitcoin?
If you have been following the cryptocurrency market, you may have noticed by now that whenever Bitcoin’s price goes down, alternative cryptocurrencies (altcoins) follow. The opposite is equally true – when the price of bitcoin rises, we expect altcoins to rise in price shortly after.
Savvy traders and investors always check Bitcoin before buying or selling their altcoin position. However, investors should be cautious about the volatile crypto market and make wise financial decisions.
