Why The Bitcoin Price Could Be Building An Uptrend

2022-11-8 01:00

The Bitcoin price is steadily trading above critical support levels and might extend its bullish trend in the coming days. The cryptocurrency positively reacted to the current macroeconomic conditions despite the U.S. Federal Reserve (Fed) promising to keep hiking interest rates. 

At the time of writing, the Bitcoin price trades at $20,700 with a 3% loss over today’s trading session and sideways movement over the previous week. This period has been profitable for digital assets against traditional assets, such as equities, for the first time. 

BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview Reasons Why The Bitcoin Price Will Stay Bullish

Investment firm Cumberland believes the Bitcoin price is building the foundation for a more significant uptrend. The firm claims this bullish price action will be supported by macroeconomic factors and a “growing drumbeat of progress in digital asset adoption.”

Cumberland believes the U.S. dollar, as measured by the DXY Index, shows weakness on the first of these factors. The currency has been rallying over the past months. This bullish price action negatively impacted the Bitcoin price and the value of other assets, including equities and gold. 

A crash in the DXY Index will provide Bitcoin with some room to run into Q4 2022. Over the past two years, the cryptocurrency saw a new all-time high in November and December. This period stands as one of the most bullish for digital assets in its history. 

Cumberland added the following on the DXY’s price action, and the reason for its weakness: 

This rally seems to have topped out, likely the result of expectations that the Fed reverse course by mid-2023. In other words, the 5.5% market-implied terminal rate is a lot scarier when short term rates are locked 0% than when they’re hovering around 4%.

The current status quo will persist unless an unexpected macro-events, such as a higher-than-expected inflation print. Other sources of uncertainty, the Russian-Ukraine war issues with supply chains, reached a “state of choppy equilibrium.”

U.S. Politics Can Favor Crypto

In the short term, the is growing uncertainty around U.S. politics. Tomorrow, the country will elect a new Congress. The results of this election will have significant consequences for the crypto market and the global economy. In that sense, the Bitcoin price is more likely to trend higher. 

A Republican control Congress could favor the Bitcoin price and digital assets in the crypto industry. In contrast, Democrats are perceived as hostile or less inclined to legislate in favor of the nascent industry. On a possible Republican victory, Cumberland wrote:

In the event that Republicans do manage to take back control of the legislative branch of government, it would seem unlikely that they usher in an era of fiscal austerity. Instead, we should expect a lean towards lower taxes, higher stimulus, and easier regulation. Similarly, we should expect a less adversarial environment in Washington for crypto (…).

origin »

ETH/LINK Price Action Candlestick Set (LINKETHPA) на Currencies.ru

$ 467.1 (+0.48%)
Объем 24H $0
Изменеия 24h: 0.85 %, 7d: 17.53 %
Cегодня L: $453.49 - H: $467.1
Капитализация $0 Rank 3676
Доступно / Всего 0 LINKETHPA

price bitcoin coming days cryptocurrency bullish trend

price bitcoin → Результатов: 126


Bitcoin Price Holds Above $96,000 — Analyst Explains This Level’s Significance

The Bitcoin price appears to have settled within the $92,000 – $102,000 consolidation range, sparking discussions about the coin’s future trajectory. While it remains unclear whether the premier cryptocurrency has enough momentum to forge new all-time highs soon, it would take significant bearish pressure to pull down the BTC price.

2025-2-9 16:00


Bitcoin Price Struggles With Liquidity Blocks From $86,000 To $104,000, Analyst Reveals The Logical Thing To Do

The Bitcoin price has spent the majority of the past seven days consolidating around the $94,000 mark with signs of a break to either side. According to a crypto analyst, Bitcoin’s recent price movements have led to the creation of liquidity blocks observed between the $86,000 to $104,000 range, which raises an equal likelihood of a bounce towards $104,000 or a downside break to $86,000 from the current price.

2025-1-13 14:00


Bitcoin price analysis: economic headwinds push price lower

Bitcoin tested the $92,000 level yesterday after falling from a weekly high of $102,000 as sell pressures mounted Macroeconomic factors cause doubts about the market strength as sticky inflation becomes a concern Spot crypto ETFs logged large outflows on Wednesday following the release of the Fed meeting notes Bitcoin’s price has fallen from a high […] The post Bitcoin price analysis: economic headwinds push price lower appeared first on CoinJournal.

2025-1-11 17:48