Bitcoin, which completed its monthly closing at $ 23,135, declined to $ 22,884 with a minor correction after the closing. Today will be a very important day for the asset, which is currently priced over $23,000 again. As you know, the Fed is expected to announce its interest rate decision at 22:00 tonight. Today, together with you, we will touch on topics such as how this data affects Bitcoin and what the experts are predicting for the Bitcoin price.
BTC Achieves Monthly Closing
Cryptocurrency market made its monthly closures as of last night. Bitcoin, which experienced such an increase in a month for the first time since October 2021, made its monthly closing below the critical resistance. The asset, which closed below the $ 23,350 resistance, rose again above the $ 23 thousand level with the correction it experienced in the morning. According to many experts, February can be a bit tiring for Bitcoin. The difficulty of the economic calendar could lead to a phase where there are corrections in Bitcoin price.
In order for the Bitcoin price to return to its former levels, it must first pass the critical resistance point of $ 23,350 and close above this level.
How Will FED Rate Decision Affect BTC?
The Fed rate decision is expected to be announced at 22:00 today. Many investors aim to shape their investments according to the decision to be announced by the FED. Now, if you wish, let’s examine together how the FED interest rate decision will affect the Bitcoin price, whether the rise will continue or if corrections are at the door.
In January, there were positive pricing in asset classes such as the crypto money market, stocks and bonds, with the expectation that the FED would turn to lower interest rate hikes and the inflation in the USA began to cool. During these positive pricing, the leading cryptocurrency also gained 40% in value. While it is predicted that the FED will increase by 25 basis points in the data to be announced today, there are many expectations that interest rate hikes will come to an end after this increase. That’s why what Fed chairman Jerome Powell had to say became even more important. When we look at the previous statement made by Powell, we see that he has hawkish views that tightening policies will continue in order to restrain inflation. Jerome Powell’s continued hawk approach in his speech this evening may cause downward movements in the cryptocurrency markets.
But many experts believe that the volatility from the Federal Open Market Committee (FOMC) has decreased and the worst days may be behind with FTX.
BTC Price Analysis
We said that the $23,350 level is a critical resistance for bitcoin price. For the asset to surpass the 23,350 resistance, it must avoid below the $23.054 zone. A move towards Tuesday’s high of $23,297 could signal a bullish session. However, Jerome Powell and the NASDAQ Index also need to provide support for this rise.
In a possible bullish case, the bulls are likely to test the second major resistance level at $23,621 and $24,000. In this case, the third resistance level to watch for BTC is located at $24,188. Sagging below the $23,054 region may activate the first major support level of $22,811. In case Jerome Powell makes hawkish statements, BTC price should avoid the $22,500 and the second support level of $22,487. In such a negative situation to be experienced, the third support level of BTC is around $ 21,920.