Crypto News: Bitcoin Scratches $23,000 Mark, Sets Bullish Signals | news

Bitcoin price is consolidating below the key $23,000 level and is still up almost 50% from its November 21 low, despite falling 1.5% in the last 24 hours to $22,600.

If the largest cryptocurrency by market cap can successfully challenge the resistance between $23,000 and $25,000, it will be the key to a sustained revival of the uptrend – it could also mean the end of the bear market.

If bitcoin breaks the $23,000-$25,000 resistance area, the path to $30,000 is open. However, it is important to keep in mind that $23,000 is strong resistance to overcoming first.

We can identify three identifiable attempts in the recent past as Bitcoin attempted the $23,000 and $25,000 levels, which resisted price pressure between July and August of last year. The three failures finally collapsed when Bitcoin plummeted to $20,000 on August 19.

Expectations of a quick and successful attack on this key price level proved to be too much of an obstacle for the bulls for now.

Bitcoin price is gathering fuel to rekindle its bullish fire

However, the longer the bitcoin price hovers around current price levels and allows sellers to sell out, the more certain we can be about future price increases. Bitcoin is gathering fuel to reignite the fires.

Zoom in on the 1-hour chart and note the contrast between the up and down angles of the ascending channel and the current descending channel.

The first trading area formed in an almost parabolic move that at a certain point is by definition unsustainable. Nothing goes straight forever. In contrast, the current soft pullback has created room for sellers to exhaust in the short term, opening the way for the next move higher.

The exponential moving average (EMA) band and the Ichimoku cloud on the 4-hour chart both show that Bitcoin is trying to build support at the current price point, but weakness may develop here. The 1 hour candles are currently showing that the price is falling below the EMA band and entering the Ichimoku cloud, which is proving to be detrimental to the current run.

Excessive caution now suggests that it makes sense even for bulls to factor in the possibility of a drop to $21,000 before making another attempt to scale $23,000. In addition, investors could consider investing in other altcoins in addition to Bitcoin, which potentially allow for higher returns. One of the most attractive investment options apart from bitcoin is currently the token $LBLOCK, which will be discussed later.

How US data on inflation, GDP and consumer sentiment will affect bitcoin price

Technical analysis aside, we can also expect macro news to affect price this week – something of a recurring theme over the past few weeks and months. Here, however, a binary perspective must be taken into account, which is ultimately based on the assessments of the inflation and recession prospects that can be derived from US economic data.

Tomorrow, Thursday, December 26th, US GDP growth and durable goods orders will come out, which will shed light on whether the US economy is headed for a soft or hard landing. On Friday, the Fed’s preferred measure of inflation – the Personal Consumption Expenditure (PCE) Index – will be released, followed by the closely watched Michigan consumer sentiment.

The PCE data is being closely scrutinized by market participants in the crypto economy and elsewhere to see if it confirms what was evident in last week’s retail sell-off. Namely, that consumers postpone major consumption decisions and cut consumption across the board. Meanwhile, the PCE data will be evaluated to see if it confirms earlier indications from the CPI data that US inflation has peaked.

What Effects Does an Impending US Recession Have on Bitcoin?

All of this data has an impact on whether the Fed will slow rate hikes. Signs of a slowdown in the economy are music to the ears of those holding risky assets like cryptocurrencies. But there is also another side that could be too bad news if the data signals an increased likelihood of a deep recession.

When powerful companies like Amazon and Microsoft lay off thousands of workers, it does not bode well for the rest of the economy. You could say that tech companies made the mistake of hiring too many people during the pandemic and could therefore be excused as a special case, but that seems a bit thin.

Data on whether the US is heading into a recession sooner rather than later remains mixed. On the one hand, production and home sales are falling, on the other hand, factory employment and construction remain robust, although this difference can be explained by some lagged effects.

Nevertheless, a weakening – but not too weak – economy should spur bulls in the crypto market. A weakening economy means the Fed is more willing to back away from aggressive rate hikes. In fact, this could be the impetus for the bitcoin price to break through $23k and climb above the critical $25k previously identified.

LuckyBlock (LBLOCK) performs solidly, regardless of developments in the global economy

Anyone currently looking for investment opportunities that also perform well independently of Bitcoin or the global economy could find the perfect project in Lucky Block. Lucky Block is a blockchain-based gambling and lottery system built on the Ethereum blockchain. It allows users to participate in lotteries and bet on different outcomes of random dice. The system uses the ERC-1155 token standard, which allows multiple types of tokens to be managed in a single smart contract.

Lucky block

LBLOCK cryptocurrency is the native currency of the Lucky Block system and is used to participate in lotteries and place bets. LBLOCK is an ERC-1155 token and in addition to its function as a betting unit, it also has the possibility of being used as a prize in some lotteries.

Investing in LBLOCK can be worthwhile as the Lucky Block system attracts a large number of users and generates high demand for LBLOCK. Since the supply of LBLOCK is limited, increasing demand can increase the value of the token. In addition, since LBLOCK can be used as a betting unit and as a gain, the users of the system can also generate high deflation, which can further increase the value of the token.

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