• 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. 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

If Dogecoin price does this, a 30% rally is a no-brainer

If Dogecoin price does this, a 30% rally is a no-brainer

Dogecoin price is at a crucial point in its journey, which could either trigger a minor swing or a pullback that will prepare it for another massive leg-up. Investors need to pay close attention to DOGE and its upcoming corrections.

More Dogecoin news

Traders can buy AVAX price here for the next leg

Traders can buy AVAX price here for the next leg

AVAX price has been on a roll since it bottomed on June 19. Since then, the altcoin has managed to provide traders with massive gains. The recent retracement suggests that Avalanche bulls are planning their next leg-up.

More Avalanche news

Solana price catches sleeping bulls off guard, is it too late to join the uptrend?

Solana price catches sleeping bulls off guard, is it too late to join the uptrend?

Solana price has rallied and recovered 60% of losses since the June 14 sell-off. SOL price Relative Stregnth Index reconquers bullish support levels. Invalidation of the uptrend is a breach below the swing low at $25.86.

More Solana news

If the Ethereum price does this, it's out of here

If the Ethereum price does this, it's out of here

Ethereum price could become a very favorable digital asset for day traders in the coming days. Still, the final confirmation for more upside potential has not yet occurred. Ethereum price shows bullish signals forecasting a recovery rally towards $2,500 for the summer.

More Ethereum news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP