Bitcoin’s short-term price upswing is challenged as bullish sentiment wanes
Bitcoin (BTC) struggles to remain over $23,500 on August 18, as the leading digital currency strives to sustain a two-month-long advance.
On the daily bar chart, it is apparent that the bulls’ power is waning, and they will soon need to exhibit fresh resiliency in order to sustain the two-month-long price climb.
Additional selling pressure during the course of this week might either reverse the current price trend or, at the least, place it in a more dangerous position.
After the minutes from the Federal Reserve’s July meeting dashed hopes of a return to a more supportive monetary policy in the United States over the next year, a key price support level for the leading digital asset declined.
On Wednesday, August 17, the leading cryptocurrency sank by more than 2%, pushing it below a positive trendline drawn from the July 15 and July 26 lows.
In the minutes of their meeting posted late on Wednesday, Federal Open Market Committee members addressed the need to keep raising interest rates to keep borrowing costs at levels that constrain economic growth in the United States for a long enough period to manage inflation.
Since the Fed started its cycle of tightening monetary policy in March, Bitcoin’s price has dropped by one-half.
Current market pricing, which had indicated expectations of an interest-rate cut in 2023 and pushed Bitcoin to a two-month high of $25,200, defies the push for further rate increases and restrictive regulations.
According to crypto trading specialist Michal van de Poppe, Bitcoin’s trend for greater periods stays rising. Poppe declared:
“Important to regain $23,7K. Longs are triggered if the price moves to $24K upon a move to $23.7K. The rising tendency persists over longer durations. Still anticipating $28-30K in next weeks.”
According to CoinMarketCap statistics, Bitcoin is now up 0.10% in the past 24 hours but down 5.03% in the previous week, with a total market cap of $449 billion.