Bitcoin breaks above $17K: a new beam of light for the crypto market?

TL; DR Breakdown

  • Bitcoin breaks above $17k.
  • FTX collapse results in market struggles.
  • Fed Chair Jerome Powell’s dovish remarks influence the crypto market.

Bulls are still attempting to take control of the market despite bears dragging the price down to an all-time low of $16,939.14.Despite BTC’s efforts to reverse the downward market transaction. BTC has experienced a high cost of $17,116.04. As they wait for a solid fundamental reason to initiate a breakout, investors have seen a new beam of light for the crypto market. Still, they hope it will likely be an outstanding trade opportunity whenever it breaks out of this range.

Market struggles caused by FTX collapse affect Bitcoin price

As the significant coins Ethereum and Solana trade with negative trends of 1.33% and 0.97%, respectively, almost the whole cryptocurrency market is in the red, according to coin360. The FTX collapse has caused many investors to start to doubt the security of cryptocurrencies as an investment. The market has been dramatically impacted by their unwillingness to participate in the bitcoin sector, resulting in a bearing pattern.

In addition, unexpectedly good job numbers were a boon to investors and are seen as one of the main factors in containing currency depreciation.

However, news that businesses added 263,000 jobs in November, significantly more than the 200,000 expected, caused the dollar’s value modestly. Meanwhile, the declines were temporary as they reached a three-month low amid a dovish posture.

Fed Chair Jerome Powell’s dovish remarks influence crypto market

The cryptocurrency market has nevertheless shown investors to be mistaken as BTC breaks above $17k, giving promise of a possible reversal for Bitcoin among other crypto coins that had significantly declined. Some claim that Fed Chair Jerome Powell’s dovish remarks, which suggested that the central bank will slow down interest rates, are to blame for this optimistic trend.

As investors anticipate the Fed reaching its top rate in the first few months of next year, the US dollar is on course to suffer its worst monthly loss since September 2010.

In contrast to the 20% possibility that rates will increase by another 75 basis points, the markets are pricing in an 80% chance that the Fed will raise interest rates by 50 basis points at its upcoming meeting. 

Current Bitcoin price

BTC is currently trading at $16,956.73 on CoinMarketCap, with a market cap of $356,091,593,882 and a 24-hour trading volume of $15,407,393,448. In the market, there are 19,223,531.00 BTC in circulation. BTC is still ranked first by CoinMarketCap.

Source: Trading view 

As the candle bars trade on the upper band, the bulls, who seek to control the market, have caused the Bollinger bands to form a narrow pattern. If the BTC price can overcome the $17245 resistance level, it may rise to the $17500 level; however, if it fails, the price is expected to move in the opposite direction, towards the support level.

Other technical indicators show the Relative Strength Index (RSI) indicator rising, indicating that buyers are in command. The MACD indicator is increasing and may soon cross above the signal line, triggering additional buying pressure in the market.

Is it time to invest in Bitcoin?

If you have been following the cryptocurrency market, you might have noticed by now that every time Bitcoin’s price goes down, alternative cryptocurrencies (altcoins) follow. The opposite is equally true – when the price of Bitcoin rallies, we expect altcoins to go up in price shortly after. 

Experienced traders and investors always check Bitcoin before buying or selling their altcoin position. Investors, however, should be cautious of the volatile crypto market and make wise financial decisions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Korean exchange trades MEW meme token more than Bitcoin (BTC)
Subscribe to CryptoPolitan