March 26, 2023
Bitcoin, is that beginning of an uptrend?
Hot Forex Review

Bitcoin, is that beginning of an uptrend?

Bitcoin Risk

While in the bigger picture, BTC still moves in a clear downtrend, the recently seen recovery has made some hope that it can be the beginning of its recovery path, which technically can be seen just above 25,000 US Dollars. Currently, 22,500 USD and 25,200 are the key resistance levels before the primary resistance at 27,000 to start the real uptrend.

14% gain in three days, but still under key resistance!

Major cryptocurrencies bounced early Friday, in line with the recovery seen in the global stock markets. On Thursday’s FED chair Powell speech, many were waiting to see a more tightening stance. Still, Mr. Powell was cautious about that, which created some hopes among investors to decrease the inflation expectations and prospects of renewed monetary easing next year.

BTC increased more than 14% above 21,000 US dollars, after recovering from over two month low. Ethereum, which is also scheduled to undergo a significant technological upgrade next week, rose about 6% on Friday to $1,720.

The main market driver was the lower risk in the market. As you can see in the bellow figure, USVIX is decreasing towards 24.60, while Wednesday, it was above 27. Market risk decreased after more transparency was seen in the decisions and plans of the central banks. This week RBA, BoC, and ECB all had their monetary policy and rate decision meeting and Mr. Powell also somehow made it clear that FED’s main focus now is inflation. These comments and announcements decreased market uncertainty and pushed the prices higher in Stock markets and Cryptocurrencies as well. However, it does not seem like a strong incentive for bulls.

As you can see in below daily chart, BTC’s resistance levels mentioned above can be clearly confirmed by a simple look at the chart and candles. If bulls can not stabilize themself and once again the price moves under 18,500, bears can go much deeper, and even a sharp fall in price is highly possible.

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