- Bitcoin price continues its downtrend as the asset tracks the 200-day simple moving average.
- Proponents believe a tighter monetary policy and a benchmark US interest rate spike could increase headwinds for Bitcoin price.
- Analysts have revealed a bearish outlook on Bitcoin, predicting a drop in BTC price.
Bitcoin price plummeted from its Thursday high of $42,965 but analysts believe the Bitcoin price trend is showing signs of improved momentum. To conclude, BTC could resume its climb to $48,000 on one condition.
Bitcoin price could resume uptrend if this condition is met
Jerome Powell, the chair of the Federal Reserve, said a rise in the benchmark US interest rate by 50 basis points “will be on the table” at the next Federal Open Market Committee (FOMC) meeting.
Historically, tighter monetary policy measures have increased selling pressure on cryptocurrencies as investors pull out from speculative and highly volatile markets. Typically, Bitcoin price has dropped in response to tighter monetary policy measures, and the outlook on BTC is bearish.
Bitcoin has continued its downtrend and stayed above the $40,000 level, tracking its 200-day SMA. Analysts, however, believe Bitcoin price could recover from the slump with increasing momentum. Bitcoin could resume its climb to $48,000 and target the $50,000 level.
A three-day spike in Bitcoin price has pushed the price higher, bringing the 200-day SMA level at $48,000 into focus. Analysts have set a downside target of $38,550 for the Bitcoin price.
@twocommapauper, a crypto analyst and trader, believes Bitcoin price is caught in no man’s land, and it has been ranging for nearly 48 weeks now. The analyst believes neither bulls nor bears are in control of the price.
#bitcoin market report + On-chain.
— Two Comma Pauper (@twocommapauper) April 22, 2022
On the weekly, $BTC remains trapped in no-man's land between two channels that we've been ranging in for the past 68 wks. i.e. Neither bulls or bears are in control - the cautious trader should wait for a break before taking a trade. pic.twitter.com/nT0KD27wsb
FXStreet analysts believe Bitcoin price could witness a trend reversal and face resistance at the $44,000 level, eventually expecting BTC to retest $46,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pro-crypto French Hill selected as Chairman of the House Financial Services Committee
Republicans selected French Hill as the new Chairman of the House Financial Services Committee. Hill is a crypto supporter and spearheaded the FIT21 bill for crypto regulations. French Hill will be replacing Chair Patrick McHenry, who is retiring from office.
Ethereum could see new all-time high above $5,000, on-chain data signals bullish momentum
Ethereum is up 1% on Thursday as it aims to tackle the selling pressure near the $4,000 psychological level. On-chain data shows that ETH has begun seeing increased bullish momentum, which could push its price to a new all-time high above $5,000.
Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink
Cryptocurrency market valuation broke $3.5 trillion Thursday, up 9.4% since Tuesday's market crash halt. In the last 24 hours, 104,700 traders liquidated $172.7 million in long contracts, accounting for 58% of the $298.5 million total liquidations.
Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery
Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a major breakout?
Bitcoin: Long-awaited $100K milestone meets profit taking
Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.