Why Bitcoin (BTC/USD) rose to $17K. Here is the potential price action next

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  • Bitcoin surged on Thursday following Powell’s statement that indicated a slower rate of rise.

  • BTC price has broken above the 20-day MA.

  • Unless the bulls can reclaim the $19,000 level, the long-term momentum for BTC is bearish.

Bitcoin (BTC/USD) gained interest from buyers on Thursday and rose to $17,100. The price rise reflected renewed optimism across markets after a dovish statement by the US Fed.

A statement Wednesday from Fed Chair Jerome Powell showed the central bank could slow to hike rates. According to Powell, there could be a small rate hike from December. The suggestion raised hopes of a slower economic tightening, which is weighing on the markets. However, Powell still warned that monetary policy could remain restrictive until real progress is made in curbing inflation.

Powell’s statement may spur prices cryptocurrency For the time being, Bitcoin led after the FTX-induced selloff. Nonetheless, Bilal Little, president of DFD Partners, shared insights from the profit. Little says that any time the market goes through a crisis, they tend to oversell. As soon as the market regains clarity, the prices move up again. However, the DFD chief warned that the rally would be tough to maintain.

According to Little, bitcoin is likely to touch the $12,000 to $13,000 level. He warns of other contagion effects of the FTX collapse amid liquidity risks grappling with crypto firms. Therefore, Little says that many crypto firms may be unable to meet liquidity demand or counter risk concerns.

BTC rising above 20-day moving average

BTC/USD Chart by TradingView

Technically, BTC bulls are propelling the cryptocurrency above the 20-day EMA ($16,586). The cryptocurrency broke the $16,000 consolidation area.

The RSI is slightly below the midpoint, indicating that demand is catching up with supply. Nevertheless, BTC sellers have the upper hand.

Should You Buy BTC?

Despite the latest gains, BTC remains largely bearish. Price recovery above 20-day EMA may offer optimism btc price may increase in the short term. However, the bears may try to make an impact on the 50-day EMA. The $19,000 resistance could also act as an upside bias.

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