Bitcoin (BTC) price may have bottomed out, here’s why
The Bitcoin price witnessed a correction after the Fed hiked interest rates by another 75 bps, but the BTC price held strong above $20K. Interestingly, BTC price has rallied twice from the $20,080 level in one week, making a double bottom.
Furthermore, on-chain data indicates that stablecoin flows into spot exchanges have reached a new all-time high. It suggests that big investors and whales started moving money to stablecoins, a factor for the Bitcoin bottom.
Bitcoin (BTC) price awaits rally amid steady coin flow
Stablecoins flowing into spot exchanges have hit a new all-time high. This is actually a good sign for the BTC price in the long term. However, it may cause the BTC price to show volatility in the short term.
Moreover, it suggests that the BTC price will not go lower than the previous low near $18K. The increased volatility could cause Bitcoin to rise higher in the short term. However, placing either a long position or a short position on BTC is still risky.
Historically, large stablecoin moves have led to strong crypto market rallies. Big investors and whales have started pouring money back into stablecoins. In fact, the latest Santiment data indicated that Bitcoin whales are ready to jump back in and push prices higher after a long bear market. Any increase in the market value of stablecoins will justify a Bitcoin bottom.
According to crypto analyst Michael van de Poppe, the Bitcoin price will remain bullish despite the Fed rate hike. The next level for BTC price should be $22.4K.
The Fed hints at a decrease in interest rate increases
The Federal Reserve announced a 75 bps rate hike for the fourth time in a row. However, Chairman Jerome Powell is a dove in the next rate hikes.
Meanwhile, the US Dollar Index (DXY) continues to rise, up 0.65% to 112.08. Wall Street banks also expect traders to look to government bonds as the Treasury Department remains undecided on bond buyback plans.
At the time of writing, the prices of Bitcoin (BTC) and Ethereum (ETH) are trading at $20,314 and $1,548.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
