Bitcoin Price Analysis
• The price of bitcoin has been consolidating between $27,000 and $28,500 for the past three weeks.
• A potential double top on the four-hour time frame suggests an impending price decline.
• The recent macro breakout from last year’s falling trend has renewed optimism for sustained bullish sentiment.
Bitcoin Prices React to High-Impact News
The US Federal Reserve (Fed) has taken steps to combat high inflation by raising interest rates nine times since March 2022. These hikes have contributed to a drop in US inflation from 9.1% in June 2022 to 6%. Additionally, the Fed’s balance sheet decreased by $73.6 billion last week, primarily due to quantitative tightening (QT). As a result, banks have reduced emergency borrowing from the Fed due to stabilization in the banking system.
Double Top Formation
Bitcoin is currently forming a possible double top pattern on higher time frames which is usually followed by a price drop. On the four-hour time frame, the current consolidation could indicate an impending implosion of prices. Furthermore, there is still a weekly death cross between the 50 and 200 MA which has made swing traders wary of a potential capitulation.
Bullish Sentiment Renewed
Despite these indicators, Bitcoin’s macro breakout from last year’s falling trend has encouraged optimism for sustained bullish sentiments going forward. Moreover, FTX and Alameda Research’s implosion are now technically behind us which reinforces this positivity further.
Can Bitcoin Price Rally To $30K?
It remains unclear whether or not Bitcoin can rally as high as $30k ahead of US employment data today but given that prices have reacted strongly to high-impact news recently it is not impossible that this could happen if such news provides positive outlooks for crypto markets and investors alike.