The Bitcoin price USD is surging once again and has hit the $25,000 psychological level. On Wednesday, BTC price had the best day of the year as the biggest cryptocurrency gained 9.57%. Most other altcoins like Ethereum and Binance coin also had a green day.
Since the start of this year, investors have been buying Bitcoin in huge chunks. Consequently, the price has soared by 48% in 2023. Many analysts call it a bullish reversal while predicting price targets as high as $40k.
However, the Bitcoin price is yet to break above its August 2022 high of $25,211. This region has become a strong resistance as the price failed to break above it in multiple attempts. A major reason for this year’s positive BTC to USD price action is the upcoming pause in rate hikes.
Nevertheless, the January inflation data hasn’t been at par with expectations. As a result, US FED has suddenly adopted a more hawkish tone. Analysts are expecting another 2 rate hikes now this year instead of the previously expected single hike. Wall Street has shown mixed reactions to the January CPI report. The next month’s FOMC meeting is likely to result in another 25 basis points rate hike.
Bitcoin USD Daily Chart
At the time of writing, BTC is trading at $24,558 after gaining 0.96% on Thursday. Or Bitcoin price prediction depends on the bulls’ ability to reclaim $25,000 level. Another rejection from this region could potentially tank the price to 20k region. Considering the price action of the US stock market, Bitcoin appears to have a mind of its own.
Most stocks are showing mixed reactions to the latest CPI data. However, Bitcoin is still printing nice gains. If global equity markets keep trading sideways, then crypto markets are expected to continue their rally.
The price started the week by tagging the low of $21351. Nevertheless, the shorts got trapped and squeezed within a couple of hours as the price surged on Wednesday night. BTC price is currently trading 24% above its 200-day moving average.