Bitcoin Price Struggles as US Dollar Nears 7-Week High
Bitcoin Price Stayed Lower at Feb. 24 Wall Street Open
• Bitcoin (BTC) stayed lower at the Feb. 24 Wall Street open as United States macroeconomic data showed inflation biting back.
• The latest U.S. Personal Consumption Expenditures (PCE) index print was 4.7% instead of the 4.3% forecast, signaling that inflation was not ebbing as quickly as hoped.
• This could cause the Federal Reserve to consider a larger interest rate hike at its March meeting — a potential headwind for risk assets including crypto.
Short-term Prospects Remain Upbeat
Cointelegraph contributor Michaël van de Poppe remained upbeat on the short-term prospects of BTC/USD, noting that “as long as Bitcoin remains above $22K, this would be sufficient to expect continuation towards $25K+.” Other analysts such as Rekt Capital also noted that BTC/USD is attempting to hold a trend line recently flipped to support on intraday timeframes and that there hasn’t been a third consecutive retest yet but Bitcoin is still holding above the Lower High resistance.
US Dollar Challenges 2023 High
The strong PCE numbers also punished U.S. stocks and brought DXY back from the brink of breakdown, with it now challenging its 2021 high and threatening to break out even further in favor of the dollar over other major currencies in upcoming weeks or months depending on whether any forces can prevent it from doing so.
Market Indicators Suggest Resistance At $23K
Monitoring resource Material Indicators highlighted resistance on the Binance order book laddered above the spot price, with most support now found at $23,000 while BTC/USD traded in a narrowing range around $23,800 according to Cointelegraph Markets Pro and TradingView data.
In conclusion, Bitcoin has yet again failed to break through its all-time highs due largely to U.S economic data and a strengthening dollar which has caused investors to remain wary about investing too heavily into crypto markets for fear of losses should prices eventually come crashing down once again following what some view as another speculative bubble – albeit one much smaller than 2017’s run up before its eventual crash in 2018 which saw prices fall by more than 80%. With market indicators suggesting resistance at around $23K and U.S dollar continuing to challenge its 2021 high however, only time will tell if Bitcoin can make one final push past these levels before correction sets in once again or if it will continue trending sideways until some other external force takes control of market sentiment once more and drives prices either up or down dramatically depending on how events unfold over the coming days or weeks ahead for investors worldwide who are eagerly watching these markets with baited breath looking for signs of what might happen next where cryptocurrency trading is concerned..