Bitcoin price action returns to face familiar resistance, with bulls failing to make new inroads towards $25,000.
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$22,355
A pullback to key resistance occurred on February 8 as crypto markets received a boost from a familiar source.
Powell: The “process of deflation” is here
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD has reached the important $23,400 zone overnight on Bitstamp.
The pair responded positively to recent comments from the US Federal Reserve, which also sent equities higher during the February 7 trading session on Wall Street.
Fed Chairman Jerome Powell talked about “disinflation” again during his appearance, leaving the market hopeful that interest rate hikes could cool more quickly in line with inflation. The last Federal Open Market Committee (FOMC) meeting was held on February 1, where the Fed raised rates by 0.25%.
“The message that we sent at the FOMC meeting last Wednesday was really that the disinflationary process — the process of reducing inflation — has begun, and it’s begun in the commodity sector, which is about a quarter of our economy,” he said. . Economic Club of Washington, D.C. at
Powell also warned that there was “a long way to go” and that the US was “in the early stages of deflation”.
Despite this, risk assets rose at the close on Wall Street, with the S&P 500 and Nasdaq Composite Index up 1.3% and 1.9%, respectively.
Bitcoin also erased previous weakness, which fell below $22,700 earlier in the week, but the bulls were unable to withstand the demand for liquidity at $23,400 and beyond.
That liquidity remained on the day, as seen in data covering Binance’s order book provided by on-chain monitoring Resource Content Indicators.
“Markets were bullish yesterday, with Bitcoin’s last H4 candle showing weakness against resistance and printing a falling star,” noted trader Mark Cullen summarized recent events.
“Personally I’m still waiting for the lows to sweep. But if BTC can close H$ above 23.4k, I’ll be looking for a push higher.”
Michael van de Poppe, founder and CEO of trading company Eight, was also encouraged by Bitcoin’s reaction. A flip of $23,300 to more solid support, he told Twitter followers earlier in the day, would mean the latest BTC price correction “is over.”
BTC/USD was trading at around $23,200 at the time of writing, with traders still counting on volatility to return.
Golden Cross vs Death Cross will be resolved “in a few days”.
Going forward, the rest of the week was kept short due to important macroeconomic cues for the crypto markets.
Related: Bitcoin Takes ‘Lion’s Share’ As Institutional Flows Hit 7-Month High
As the Syntelegraph reported, eyes were already on next week’s inflation data, which will come in the form of a printout of the Consumer Price Index (CPI) for January.
At the same time, chart analysts were hoping for a positive result from Bitcoin’s latest “golden cross” on the daily chart – the first since September 2021. At the same time, however, BTC/USD continued to print “death” weekly times. Cross.” “An event that often preceded more downside in the past.
“Many people say Death Cross / Golden Cross lagging indicator. For those who believe only Golden Cross is bullish, and Death Cross is bearish, it is lagging. Use this indicator to understand the momentum,” from a Twitter thread dedicated to his partner Jibo. wrote in part. February 7 topic.
Gibon compared the current configuration to previous cases in 2015 and 2019, adding that it would take “a few days” for the impact of the cross to become more apparent.
