"Cryptocurrencies have a trump card." What will happen to Bitcoin in the coming week

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Author: Robert Strickland (crypto expert)
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"Cryptocurrencies have a trump card." What will happen to Bitcoin in the coming week

Bitcoin price forecast for the week from April 17 to April 23
The expert analyzed the market situation and told how it may change in the short term

 

On Sunday, April 16, bitcoin is trading at $30.28 thousand, its price rose by 8.5% over the past week. The specialist analyzed the market situation and estimated the prospects of bitcoin exchange rate movement for the next seven days.

BTC/USD
30 332 +69 (0,23%)
BTC/USD: 30591Friday, 14 Apr, 17:32

"The technical picture on Bitcoin is favorable."
BitRiver Financial Analyst.

It's been a hot week. Like everyone else, bitcoin has weighed by 7.63%, but this is no reason to panic. According to the last quotes, the price is $30,393. The rise in quotations began in the evening of April 9. Since the new week, purchases of the first cryptocurrency intensified amid the growth of U.S. stock indices. After the end of the U.S. holiday and Friday's strong employment data, investors raised the probability of another Federal Reserve rate hike in May by 25 basis points.

As that rate hike was factored in by the markets, buyers went on the offensive after a prolonged sideways trend. First, they took the $29,380 level, and on Cosmonautics Day (April 12) they tested the psychological level of $30,000. The price went up to $30,550.

The locomotive for the whole market was Ethereum (ETH). On the night of April 12-13, the Shapella update was successfully activated on the main Ethereum network, after which it became possible to withdraw blocked tokens from stacking. There was no reaction to the network update. Apparently, investors wanted to see how stackers would behave after coins were withdrawn. The effect was delayed. Shapella's update contributed to the increase in trading volumes and supported the bullish trend of the major altcoins. The ETH/USDt pair was up to $2,128.

On April 12 at 15:30 MSK, the U.S. Labor Department released its inflation report. The consumer price index rose 0.1% on the month and 5% on the year. Though of course, everyone was expecting inflation to match the 0.2% m/m and 5.2% y/y forecasts. The inflation report couldn't stop Bitcoin's rise because the rise was supported by the Ethereum rally. And then the dollar also fell to 101.16p after rising.

On April 14, the pair BTC/USDt was rising to the level of $31,000. It was not possible to move higher - the dollar turned up and the indices went down. The dollar rose at the end of the week on strong industrial production data, which rose 0.4% in March after rising 0.2% the previous month (the forecast was +0.2%).

Investors priced in a weak retail sales report, which dampened enthusiasm for the start of the quarterly earnings season. We'll see how the market opens on Monday.

Cryptocurrencies have gained a trump card. Democrats and Republicans continue to play the political game of who will do more damage to the United States. Congressmen are haggling and the Treasury Department is paying higher interest rates to service the debt.

On April 11, the cost of U.S. default insurance jumped to the highest level in a decade. Default insurance on 5-year U.S. bonds rose to 42.91p.

In 2022, the U.S. paid $853 billion in interest on its government debt. This year, the number of interest payments on government debt could reach $1.2 trillion to $1.5 trillion. Yellen warned that the government has enough money until June. The country could face default in July or August. Now, whether there is a default or not, bitcoin and gold can act as protective assets against it. Gold in physical form and Bitcoin in digital form.

The technical picture for Bitcoin is favorable for continued upward movement. According to BitRiver estimations, now we can head to the area of $34-35 thousand. For ETH the nearest target is around $2,770.

 

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