“Several scenarios at once.” What will happen to bitcoin next week?

ASTL Token Project > Blog > “Several scenarios at once.” What will happen to bitcoin next week?

The coming year 2023 began very optimistically for the cryptocurrency market. By the beginning of the third decade of January, bitcoin had risen in price against the dollar by 40%, to $23,335. Throughout the week, the price was trading in the range of $20,600 – $21,650, and only by the end of the working week, buyers tested the level of $22,000.

Market volatility has been rising in the US session for the last three trading days. On January 18, the BTC/USDt pair fell to $20,407. Bitcoin fell in price following a sharp drop in the S&P 500 and Nasdaq indices. The flight from risky assets was caused by statements by the head of the Federal Reserve Bank of St. Louis, James Bullard, about the policy of the US Federal Reserve System. He said the Fed’s policy should remain tighter in 2023. Buyers were able to protect the $20,300-20,400 zone. On January 19, the bitcoin rate recovered to $21,192. Demand for the cryptocurrency grew amid statements by the new head of FTX, John Ray, about the possibility of reviving the exchange. The news of the platform restart caused the FTT token to rally by 37% to 2.48%. It was speculative activity to make a quick profit on the pump, while the strengthening of bitcoin was restrained. On Friday, January 20, at the end of the day, Bitcoin rose by 7.57%, to $22,667. Before the American session, the price was trading at $21,000. By the close of trading in the US, the BTC/USDt pair jumped sharply to $22,385. On Saturday, On Jan. 21, buyers moved the high by $23,335.

There are several factors that explain the increase in buyer activity and the price acceleration:
— The fall of the dollar index to 101.74 points;
– A sharp recovery of the S&P 500 index by 1.88%, to 3972.06 points;
— U.S. Federal Reserve Governor Christopher Waller, a proponent of aggressive rate hikes last year, advocated cutting the pace of rate hikes to 25bp. at the February 1 meeting.
— US Treasury Secretary Janet Yellen said that the refusal of Congress to increase the borrowing ceiling (and it has already exceeded $31 trillion) will lead to a global financial crisis and default. Janet Yellen, scaring Congress, simply reminded investors of the precarious position of the dollar and US bonds. If investors point to bitcoin and say that it can wait out the “hurricane of triumphant dollar problems”, then it can quickly return to $34 thousand. New targets for it remain at the levels of $25 thousand and $30 thousand.

The BTC/USDt pair exceeded the $22,500 resistance level, rising to $23,335. According to Coinglass, $120 million worth of short positions were liquidated on the rise. Buyers now have to gain a foothold above $22,500 to end the crypto winter and continue the recovery phase.

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