Federal Reserve Chairman Powell's language about raising interest rates released during the semi-annual congressional hearing resulted in a sharp increase in the value of the US dollar, causing non-US currencies to plummet, and causing the Bitcoin price to potentially test the 20,000 level again.
In terms of news, the cryptocurrency market is still affected by the chain reaction caused by the collapse of FTX.
Firstly, multiple cryptocurrency companies have encountered financial problems, all of which are related to FTX assets, which have caused significant damage to Bitcoin and investor confidence. The recent news that a cryptocurrency bank, which has received much attention, has postponed the release of its financial report is putting pressure on market sentiment. It is expected that other related companies will also surface, and the impact of the FTX bankruptcy case will not dissipate in the short term.
Secondly, the cryptocurrency platform Binance has received special attention from regulatory agencies. As a "giant" in the cryptocurrency field, Binance still controls a considerable share of the market. The bankruptcy of FTX has prompted investors to pay more attention to Binance's financial situation, hoping for greater transparency, while regulatory agencies continue to question Binance's finances and operations and impose restrictions to prevent it from suffering the same fate as FTX. The development of the Binance platform plays a crucial role in the stability and recovery of the cryptocurrency market.
Finally, the US Securities and Exchange Commission (SEC) is pushing for cryptocurrency regulatory legislation and urging global regulatory agencies to establish a regulatory framework. In the short term, regulatory trends are unfavorable to the cryptocurrency market, but in the long term, there is a need for a regulatory system to safeguard the recovery and development of the cryptocurrency industry.
The market continues to track news in the cryptocurrency field, but the price movements of tokens such as Bitcoin are mainly influenced by the performance of the US dollar.
Over the past month, US inflation has risen significantly, and expectations for the Fed to extend the time to raise interest rates have increased. However, investors are frustrated by the lack of official guidance. This week's Powell congressional hearing and February non-farm payroll data have become the focus of attention.
Fed Chairman Powell participated in the semi-annual congressional hearing overnight and stated that "the terminal interest rate will be higher than previously expected, and the pace of rate hikes will still be accelerated if necessary," causing turmoil in the market. Investors may have expected a tough attitude from him, but they didn't expect his attitude to be so direct. The US dollar surged, and US and non-US varieties suffered heavy losses.
This testimony will point the direction of the financial market for the next 2-3 weeks. To some extent, the importance of February non-farm payroll data and the March FOMC meeting has been weakened. The data and meeting will become a detailed annotation of Powell's hearing. The direction of the US dollar has been clarified in stages, and Bitcoin prices are facing the risk of further decline after being blocked.
Bitcoin as a whole maintains a low consolidation range, with a key pressure level of 25,000, which has been blocked twice, confirming the strong resistance of this line. After the price was blocked, it entered a shock consolidation and tested the support level of 21,300 below, but it has not been able to complete the upward breakthrough, indicating the potential for downward prices.
With the US dollar showing strong upward momentum, Bitcoin may test the 21,300 level again, and once it falls below this line, it will open up space to fall to 20,000 and enter a downward trend. If it fails to hold 20,000, it may return to weak consolidation and still face the risk of falling below 17,000 in the future. Bitcoin must effectively break through the pressure of 25,000 to continue to rebound and test the range of 28,000-30,000.
Comment:
The position in the chart is not broken, you can buy up, but don't buy too much
Comment:
Is rising, the short-term continues to be bullish
Comment:
The trend is normal, don't worry, the idea will be updated later
Comment:
Market sentiment is affecting, which is why I told everyone not to buy too much
Comment:
Really fell below 20,000 points, waiting for a rebound
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