Bitcoin Price Prediction as BTC Approaches Key Level Support Level – Where is the Next BTC Target
The volatility of Bitcoin has seen the cryptocurrency drop by almost 4% in the last week. BTC is nearing a key support level at the time of writing. Analysts are closely watching the market to determine the next target.
It is important to understand the factors that can impact BTC’s price in the near and long-term.
How rising interest rates affect Bitcoin and other digital assets
According to the Bureau of Economic Analysis’s (BEA), January saw inflation rise 5.4% in comparison to the previous year. The report, Personal Consumption Expensitures (PCE), was released on February 24.
Core inflation, the preferred method of measuring inflation by the Federal Reserve, has increased 4.7% since January 2022. The impact of rising inflation was evident in the US Dollar Index (DXY), which reached 105.26 on January 6.
The Federal Reserve has established 2% inflation as its goal and it is expected that there will be more interest rate hikes to address inflation. The market expects that the Federal Reserve will continue to raise interest rates due to the possibility of rate increases.
BTC/USD declined when the PCE data showed a 5.4% rise in inflation in January. This indicates Bitcoin’s vulnerability to rising interest rates.
Cryptocurrency investing and the Cautionary Note of The IMF
During the G20 conference in Bengaluru Kristalina Georgieva, IMF’s Managing Director, suggested that banning private cryptocurrency could be an option. In a February 23rd report, the IMF also provided new guidelines to its member countries regarding cryptocurrency regulation.
The nine-point plan of action by the agency emphasizes that cryptocurrency assets should not be considered official money or legal tender. However, it recommends tighter regulations for virtual currencies in order to increase financial stability.
The IMF’s strict stance Increased oversight and regulation of cryptocurrency could lead to increased acceptance and value for BTC/USD.
How difficult is Bitcoin mining?
The difficulty of mining Bitcoin reached an all-time peak (ATH) on February 24, 2023. On-chain data shows that the mining difficulty rose to 43.05 after the block 778.323 recalculation.
The difficulty of mining bitcoins has increased by 9.5% over the past two weeks to an all-time high. This indicates that more miners are entering this market to make money off the rising BTC price.
Mining difficulty is the number of iterations required to generate a Bitcoin block’s hash. Mining profitability is affected by the increased complexity of solving a block.
Although mining difficulty doesn’t directly impact the price, an increase of difficulty means that miners will need to use more energy to mine one BTC. This makes it more difficult for them to remain profitable.
Bulls will be encouraged by a stable but flexible BTC. The asset is still in a position to recover, despite the current drop in Bitcoin prices. The rebound in BTC/USD prices is also a positive sign for miners.
Bitcoin Price
BTC/USD traded at $23,177.00 on February 26. It is currently trading at $23,245.00. This represents a 0.78% rise in the past 24 hours. In the past 24 hours, the highest BTC/USD value was $23,302.00 and the lowest was $23,083.00. The value of BTC decreased by more than 5.5% over the last week.
The immediate support level for the BTC/USD pair is at $22,800. If it falls below that level, it could expose the BTC price to the next support area at $22,150.
Bitcoin faces resistance at the $23,500 level while its immediate support level is at $22,800. BTC could be exposed to $22,150 support if it falls below that level.
The BTC/USD pair is in the oversold zone. However, BTC could rebound and break through resistance at $23,500. This could lead to a possible price of $24,250.
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Bitcoin Alternatives
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Disclaimer: The Industry Talk section contains insights from crypto industry players, and is not part of Cryptonews.com’s editorial content.