• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Binance Addresses Accusations From Elizabeth Warren and Other US Senators in New Open Letter

2023-03-30

Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

2023-03-30

Binance’s CZ refutes report claiming company has been hiding China ties

2023-03-30
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Disney Metaverse Division Reportedly Scrapped

    2023-03-28

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Binance Addresses Accusations From Elizabeth Warren and Other US Senators in New Open Letter

    2023-03-30

    Binance’s CZ refutes report claiming company has been hiding China ties

    2023-03-30

    $852,000,000 in Ethereum, Polygon, Fantom and Additional Altcoins Have Left Binance Following CFTC Lawsuit: Nansen

    2023-03-30

    Elizabeth Warren says she’s building an anti-crypto army in new campaign

    2023-03-30

    SEC Chair Gary Gensler To Face Congress Over Strategy on Digital Assets

    2023-03-30
  • Learn

    Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

    2023-03-30

    Next Cryptocurrency to Explode 2023

    2023-03-30

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Here’s Why The Bitcoin Price Rally Stalled For Now
Bitcoin

Here’s Why The Bitcoin Price Rally Stalled For Now

2023-01-25No Comments4 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

The Bitcoin price rally has stalled for five days now. After BTC experienced a furious surge from $21,000 to $23,000 last Friday, the price is now in a consolidation phase. The reasons for this are diverse.

As NewsBTC reported, Bitcoin’s Relative Strength Index (RSI) on a daily basis is showing severe overheating. The technical indicator reveals that the BTC price is in heavily oversold conditions.

During the recent upward movement, the daily RSI was near 90 at times but has since cooled to 78 at press time. The stalling of the BTC price at $23,000 could therefore signal a healthy consolidation and a reset before a new price rally could be on the cards.

Another key factor for the Bitcoin price in recent weeks has been its correlation with the U.S. Dollar Index (DXY) and the S&P 500. Generally speaking, a weakening dollar is bullish for risk assets like Bitcoin and the S&P 500.

However, the weekly chart of the DXY reveals that the dollar index is still holding above its weekly support at 101, which experts consider an extremely crucial support level.

If the DXY breaks below this mark, things would be extremely bullish for the Bitcoin price. However, due to the still-standing support, the euphoria among risk investors may have also come to a halt for the moment.

DXY Bitcoin correlation
DXY still holding support, 1-week chart | Source: DXY on TradingView.com

FOMC Meeting Will Be Decisive For Bitcoin Price

The next FOMC meeting of the U.S. central bank will take place in just one week, on February 1, and will probably set the course for another bull or bear trend.

According to the CME FedWatch tool, 98.2% currently assume that the Fed will further reduce its rate hike pace and raise only 25 basis points. But statements from Fed Chairman Jerome Powell will also be crucial.

Thomas Lee of Fundstrat Global Advisors assesses that inflation has “literally hit the wall” since October and that core inflation is not “sticky,” contrary to the Fed’s initial expectations. According to Lee, the bearish sentiment in the stock market in December was triggered by an “unforced error” by the Fed and led to the FOMC saying inflation was hotter in December.

As a result, Fundstrat expects the FOMC to make a “course correction” in February, meaning financial conditions will loosen and the VIX will fall, which in turn will drive risk assets higher.

However, Lance Roberts, chief strategist at RIA Advisors, warns that the Fed doesn’t like the current rally in financial markets and will therefore take appropriate action.

The Fed really isn’t going to like the bulls running markets up and easing financial conditions this much. Don’t be surprised if Powell smacks the market again at the upcoming FOMC meeting.

On the other hand, Fed Governor Chris Waller recently came out in favor of a 25 basis point rate hike at the next FOMC meeting, thus solidifying expectations for the February FOMC meeting, as reported by Nick Timiraos of the Wall Street Journal aka the “Fed’s mouthpiece.”

As the chief economics correspondent wrote via Twitter, Waller made it clear that the Fed would not make a risk management mistake similar to the one it made in 2021 when it stuck to its forecast for persistent disinflation. Waller said, “this is different from 2021 because it’s easier for the Fed to cut if it’s wrong.”

“In other words, Waller sees the risk of having overtightened because inflation comes down quickly as a first-class problem,” Timiraos said.

For Bitcoin’s price, the indication of an upcoming pivot and a 25 basis point hike would be a powerful reason for a new rally. At press time, the BTC price stood at $22,622.

Bitcoin price BTCUSD
Bitcoin price still consolidating, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from iStock, Chart from TradingView.com



Source link

Bitcoin Heres Price rally Stalled
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

2023-03-30

Texas bill seeks to eliminate incentives for Bitcoin miners

2023-03-30

CFTC Says Bitcoin, Ethereum and Litecoin Are Commodities in Lawsuit Against Binance and CEO Changpeng Zhao

2023-03-29

Balaji Srinivasan Says Millions of Worried Depositors Could Wire Money to Bitcoin As Banks Get Too Big To Escape

2023-03-28
Add A Comment

Leave A Reply Cancel Reply

Top Posts

With Cardano [ADA] breaching $0.4565, bears could eye this level next

2022-07-03

US Senate Banking Chairman Says Banning Cryptocurrencies Is Very Difficult: Report

2022-12-20

Play-to-earn mania has cooled, but this new game spots a big opportunity

2022-07-28

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Binance Addresses Accusations From Elizabeth Warren and Other US Senators in New Open Letter

2023-03-30

Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

2023-03-30

Binance’s CZ refutes report claiming company has been hiding China ties

2023-03-30
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$28,149.00-0.95%
  • ethereumEthereum(ETH)$1,795.60-0.47%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.05%
  • binancecoinBNB(BNB)$317.110.52%
  • usd-coinUSD Coin(USDC)$1.00-0.03%
  • rippleXRP(XRP)$0.54-2.22%
  • cardanoCardano(ADA)$0.377179-2.35%
  • Lido Staked EtherLido Staked Ether(STETH)$1,790.37-0.57%
  • dogecoinDogecoin(DOGE)$0.074999-1.57%