Bitcoin bulls struggle to break above $23,000

Bitcoin bulls struggle to break above ,000

Bitcoin reached and stabilized at $23,000 last week, with this figure becoming the biggest resistance line to date, even surpassing the long-suffering $20,000.

The world’s largest cryptocurrency is now sitting just under $23,000, but the fact that it has bounced back after falling to $22,300 is a relief to many bulls.

Traders speculated that the bottom has already been reached at $17,000 or less, but bitcoin has made a strong comeback.

The recent revelation that Tesla held its position in Bitcoin may be one of the reasons, as is the Nasdaq which is up nearly 2%.

Growth is also stable at 2.9% quarter-on-quarter, but slowed significantly year-on-year to just 1% in the fourth quarter, down from 1.9% in the third quarter.

However, this gave an overall growth rate of 2.1% for 2022, more in line with pre-2020 growth rates.

However, last year’s downward trend may be a cause for concern, although in some ways there is a lot of growth to be seen from the 5.7% gain in the fourth quarter of 2021.

If it keeps up that pace, we could see good growth in the first quarter of 2023, although big tech layoffs have accelerated and this could spill over into the wider economy.

That’s why Jerome Powell and the Federal Reserve Board will have a tough meeting next week when they decide what to do with interest rates.

Everyone expects them to increase another 0.25%, but it’s less predictable whether they’ll take a break after that or another 0.25%.

Looking ahead, there is speculation that they could cut interest rates mid-year. Inflation is now approaching the same level as interest rates, but on a downward trend.

Many expect it to fall in March. At that point, interest rates could be well above inflation, leaving the Fed with no choice but to lower them.

These macroeconomic factors are driving more bullish sentiment for assets than we’ve seen yet, with bitcoin being the best investment of the year so far.

However, almost everyone expects it to hit $25,000 where they claim there is insurmountable resistance.

However, the $23,000 resistance could anticipate that $25,000 level. This could be where the bulls and bears fight for new territory.

If that hurdle is broken, the next one will be at $28,000, where major resistance could fall or fall for months.

This $23,000 tension would be understandable in this case and since the alts haven’t started taking turns yet, it looks like bitcoin still has some show to offer for now.

Source: Live Coins