Bitcoin price declined slightly on Monday after approaching the $24,000 resistance.
Macro factors will be major drivers for the price of bitcoin and other assets.
Consumer confidence, Fed decision and NFP data will be in focus.
Bitcoin The prices declined slightly on Monday as investors turned their attention to key US economic data and the upcoming Fed decision. BTC price was trading at $23,125, down a few points from this year’s high near $24,000.
Fed decision and NFP data
Macro data and events will be the key things that will drive the price of bitcoin – and other assets – this week. On Tuesday, the Conference Board will publish consumer confidence data for January. This is an important statistic that is closely watched by investors and policy makers because consumer spending plays a significant role in the economy. Economists expect confidence to continue rising in January as inflation eased.
The first FOMC decision of the year will come after the US Consumer Confidence data. with a decrease in inflation and stocks and crypto prices Analysts expect the Fed to hike by 0.50% for the second time in a row. It will be extremely aggressive in trying to dampen the enthusiasm of investors and traders.
In theory, an extremely aggressive tone would be bearish for the price of bitcoin. Historically, crypto prices tend to rally in periods of easy money policies. Although, in reality, there is a possibility that bitcoin will rise even if the Fed seems hawkish. That’s because investors may not believe the tone of FOMC officials.
The Fed will likely guide two more 0.50% hikes after holding interest rates as it seeks to tame inflation.
Finally, the bitcoin price will react this week to the latest Non-Farm Payrolls (NFP) scheduled for Friday. These numbers will be important because they will guide the Fed in making future decisions. Strong jobs numbers mean the bank will continue to sound more hawkish in the coming meetings.
bitcoin price prediction
BTC price has been in a strong bullish trend over the past few weeks. This has formed an ascending channel shown in black. The coin has moved above all moving averages. Moreover, this important support was moved above $21,615, the highest point dated January 18.
Therefore, there is a possibility that bitcoin will retrace slightly before the Fed decision and then rebound after the decision. Thus, the coin could retest the support at $22,000 and then move higher towards $25,000.