Technical Analysts Highlight Key Levels for Bitcoin as Macro Factors Drive Markets

Technical Analysts Highlight Key Levels for Bitcoin as Macro Factors Drive Markets

Analysts are highlighting key technical levels and crucial macroeconomic factors driving bitcoin prices. … [+] (Photo by Ozan KOSE/AFP) (Photo by OZAN KOSE/AFP via Getty Images)

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Bitcoin prices have experienced some turbulence lately, falling below $19,000 earlier this week and then rebounding.

Today, the cryptocurrency is relatively stable, trading between $19,000 and $19,500 on TradingView.

Where is the digital currency going after these latest price moves?

Analysts delved into the issue, highlighting the crucial role of macroeconomic developments such as inflation, central bank policies and the recent appreciation of the US dollar.

In addition, they identified key levels of support and resistance that technical traders can watch in the future.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Central Bank Policy

The European Central Bank has elected to raise its three key interest rates, one on deposits and the other two on short-term loans, by 75 basis points today.

The Governing Council of the financial institution, which is responsible for shaping monetary policy for the eurozone, went on to say that it expects these rates to rise “in the next several meetings.”

The Federal Reserve has significantly increased its benchmark rate in recent months, and market participants are more than 80% confident the financial institution will announce another 75 basis point rate hike at its next policy meeting, research data provided by the Federal Reserve shows. . CME FedWatch tool.

dollar index

Another important macroeconomic development is the recent strength of the US Dollar Index (DXY), which measures the purchasing power of the dollar against other fiat currencies.

In the past week, this index reached 110.68, the highest in more than 20 years. Since then, the measure has retained much of its strength, trading north of 10 a.m.

“Bitcoin is hurt by the rising Dollar Index (DXY),” emphasizes William Noble, chief technical analyst at Token Metrics research platform.

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