Bitcoin Approaching $22K, Market Gets New Reason to Celebrate?

Bitcoin has gained $500 successful the past hr arsenic the U.S. perchance confirms what could beryllium a short-lived highest successful ostentation metrics. The U.S. Central Bank, and the Federal Reserve (Fed), volition clasp an important lawsuit today, and the crypto marketplace mightiness spot a bullish continuation.

At the clip of writing, Bitcoin (BTC) trades astatine $21,800 with a 1% nett successful the past 24 hours and a 6% nonaccomplishment successful the past 7 days. The cryptocurrency was rejected northbound of $22,000 and seems to beryllium connected way to re-test those levels of resistance.

BTC’s terms with sideways question connected the 4-hour chart. Source: BTCUSDT Tradingview

A spike successful ostentation has been 1 of the macroeconomic factors negatively impacting Bitcoin, the crypto market, and risk-on assets. The Fed has been trying to dilatory down ostentation and mightiness win which could let them to easiness their monetary policy.

Inflation is measured by respective metrics successful the U.S., but the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) are 2 of the astir important. The erstwhile hinted astatine a alteration successful ostentation astatine the commencement of August erstwhile it printed an 8.5% for July 2022.

Expectations were aiming astatine a CPI people supra 9%, but the affirmative results led to a Bitcoin and wide alleviation rally crossed the crypto market. Now, the U.S. published its PCE metrics which stood astatine 0.1%, coming successful from 0.6%, which positively bushed marketplace expectations.

On this metric and the imaginable to enactment a caller rally, expert Caleb Franzen said:

The July PCE information confirms precisely what we saw successful the CPI & PPI data. This volition apt springiness the marketplace much crushed to celebrate, which is wherefore we’re seeing Bitcoin backmost implicit $21,800 aft dipping beneath $21,150 anterior to the report. Expect tech & precocious beta to execute well.

Can Bitcoin Break Above $22,000?

For the clip being, each eyes are acceptable connected the U.S. Fed Chairman Jerome Powell and his code successful Jackson Hole. Market participants look to beryllium taking agelong positions, arsenic determination is simply a cognition that Powell mightiness look dovish, little assertive successful his intent to propulsion down ostentation oregon observe the caller ostentation metrics.

Bitcoin indispensable interruption supra captious absorption astatine $22,000 to supply bulls with a convincing accidental to displacement momentum. Analyst Justin Bennett has remained cautious astir mid-term bullish continuation.

In a caller marketplace update, Bennett hinted astatine the anticipation that the crypto marketplace trades sideways for the adjacent 2 years. About this scenario, Bennett said:

I’m not trying to forecast precisely what volition happen. I don’t cognize what volition hap (nobody does), and determination are acold excessively galore variables to count, overmuch little forecast. But don’t presume this crypto carnivore marketplace is similar immoderate other. The past bull marketplace surely wasn’t.