Bitcoin started attracting buyers after it began to float around the $18,000 price level. BTC quickly climbed the chart two weeks later. However, the coin’s technical outlook suggested that the bears hadn’t given up just yet.
BTC may surpass the $20,000 price level if the bulls are able to maintain their momentum during the coming trading sessions. Once the bulls break over the $20,000 barrier, the possibility of a rally toward the $22,000 price level cannot be ruled out.
At the time of writing, BTC was trading at $19,120 and was down by more than one percent in the last 24 hours.
The crypto market had a significant selloff as a result of the Federal Reserve continuing its hawkish stance and hiking interest rates. The probability of a recession has also increased as a result of the Fed’s position.
FED to soon change course?
As reported by Bloomberg, Professor Jeremy Siegel of the University of Pennsylvania predicts that the stock market will rise 20–30% in the coming year because it is currently undervalued. He thinks that the Federal Reserve is draining the market’s enthusiasm.
The general stock market and the cryptocurrency market have a close relationship. Cryptocurrency assets have a beta of 2 in comparison to the overall stock market, according to Coinbase Research. In other words, the price of cryptocurrencies will fluctuate by two times as much as the overall market.
The crypto winter was primarily about the macroeconomic outlook rather than the cryptocurrency outlook, reveals the Coinbase research. According to Siegel, the cost of inflation in the economy is outweighed by the risk of a recession.
He also emphasizes that the Fed will soon change course if it adheres to long-term patterns. He contends that the central bank needs to give the interest rate increase some time to take effect.
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