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Bitcoin faces resistance at critical level, Fed actions affect price
In a dynamic cryptocurrency landscape, Bitcoin faces a significant hurdle at the critical $43,400 level, forming a challenging double-double pattern. The development comes amid the Federal Reserve’s careful balancing act in response to economic changes that have sent ripples through global financial markets.
Federal Reserve decisions have a huge impact not only on traditional markets but also on the direction of Bitcoin. As investors and traders closely monitor these developments, Bitcoin’s current position raises important questions about its short-term and long-term price predictions in this complex financial narrative.
The Federal Reserve recently kept interest rates at around 5.25%-5.50%, the third straight session without a rate hike. The change marks a departure from the more aggressive rate hikes that have been in place since mid-2022 to address inflationary concerns. In a recent press conference, Federal Reserve Chairman Jerome Powell emphasized the need to balance inflation control with labor market stability. While acknowledging the improvement in employment, Powell cautioned against the possibility of policy tightening amid continued economic uncertainty.
The U.S. dollar index (DXY) reacted with a 1.19% drop over two days as market expectations for more aggressive Federal Reserve action were not met. Powell’s comments about a potential interest rate cut in 2024 and the possible threat of recession intensified the downward pressure on the dollar.
Bitcoin Price
Despite positive indicators such as initial jobless claims falling to 202,000 and an unexpected rise in retail sales in November, the market’s focus remains on Powell’s cautious stance, fueling speculation about possible policy changes.
In this context, Bitcoin benefited from the weakening of the dollar and experienced an increase of 0.15% in 24 hours and reached $42,775. The price of Bitcoin often shows an inverse correlation with the value of the US dollar, so the decline in the value of the dollar has coincided with a 3.7% increase in Bitcoin over the past two days.
As of December 15, Bitcoin’s performance in the cryptocurrency market has been mixed. With a 24-hour volume of 25.42 billion, Bitcoin shows a slight increase of 0.1025.42 billion bitcoins with a circulating supply of 19.57 million bitcoins from a peak of 21 million.
In a 4-hour chart analysis, Bitcoin is facing a critical moment at the pivot point of 42824. On the downside, support levels are found at $40,983, $40,983, $38,068 and $36,227.
These levels play an important role in determining the short-term path of the Bitcoin price.
However, despite these indicators, the observed chart patterns, especially the resistance around the 43,450 mark, suggest bearish sentiment if the price breaks from this level. As a result, Bitcoin’s current trend appears to be below bearish.
