Bitcoin Price Prediction: Is BTC's $30,000 target in jeopardy after recent slowdown?
- Bitcoin price is taking a step back with over 3% loss in two trading days.
- BTC tests support at a key level that could break in the near term but does not mean the uptrend is finished.
- With the Golden Cross nearly in full effect, expect a strong rally once the Fed confirms that inflation will still come down in the coming weeks.
Bitcoin (BTC) price worries traders as the earnings season sees profit warnings being issued, labor costs rising, margins thinning, and goods still very pricey. Second-tier data confirms that inflation does not seem to be going away that easily. Traders will want to hear from the US Federal Reserve to be reassured that enough has been done so far and that inflation will come down as the delayed impact of rate hikes is still set to kick in.
Bitcoin price proof that central bank policy always kicks in with delayed effect
Bitcoin price is tanking for a second consecutive day in a row as support is being tested at $23,878 in early Wednesday trading. The downturn comes as traders are getting worried as interest rates are spiking across the board, and second-tier data suggests that inflation is not going away that easily. With Bitcoin price up 45% for the year, it is unsurprising that the uptrend is taking a small pause as the effect of the central bank rate hikes is still yet to be felt.
BTC traders must not forget that although inflation looks to be sticky, several economic and growth indicators show signs of weakness. More and more companies are cutting jobs surgically where needed to keep the best employees within the firm, and housing prices are coming down while empty vacancies in New York apartments are rising. Expect Bitcoin price to either find support at $23,878 or $21,969 before starting its uptrend again. Finally, expect to see the 200-day Simple Moving Average (SMA) rise and fully materialize that Golden Cross with a $30,000 price target.
BTC/USD daily chart
The biggest risk for a slip below $20,000 comes in case the economic and sentiment data should point to a toxic mix of high inflation, bullish sentiment in both consumers and businesses, and housing prices on the rise again. That would mean that the Fed needs to hike even more as the inflation is still being fed with plenty of people at work and higher wages. Multiple rate hikes beyond the summer could see Bitcoin price tank toward $19,036.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
