After the bearish market last year, cryptocurrencies provided high returns to investors in the first quarter of 2023. Bitcoin reached 30 thousand dollars in the second week of April, reaching the highest figure of the last 10 months.
Investors are investigating whether the price action in Bitcoin is due to manipulation or because there are serious reasons behind it. Although the "Omaha Oracle" Warren Buffet could not find a basis behind Bitcoin and defines crypto as "gambling", there is data that the rise is justified.
Dollar Index Hits Low of the Year!
The dollar index DXY, which measures the value of the US dollar, the world's reserve currency, against other currencies, fell below 101 during the week, reaching the lowest level in the last 12 months. The depreciation of the dollar is an argument supporting the rise of Bitcoin and gold.
Expected Decrease in Interest Rates
The Fed is expected to reduce interest rates after consumer inflation in the USA declined from 9% to 5% and after the post-pandemic supply-related problems were largely resolved.
Although officials are worried about the stickiness of core inflation despite the decrease in CPI, the interest rate expectations of the markets are as follows:
Long-Short Transactions in Balance
The majority of crypto analysts prefer to study the rate of transactions in the futures markets after sudden price movements.
Analysts can interpret that the movement may be manipulative in a scenario where the amount of transactions in one direction outweighs. For example, it is alleged that brokerage houses can deliberately put leveraged short traders in a difficult position in a scenario where the Long-Short transaction rate is 40% to 60%.
Today, the balance of leveraged transactions is interpreted by some experts as a healthy rise.
Latest Status in Bitcoin
The leading cryptocurrency Bitcoin is located in the resistance area (blue colored zone), which has played an important role for the last 2 years.
Technically, we can expect a bullish market for BTC if the blue zone and the $32,200 resistance are surpassed. However, if Bitcoin falls below the $28,700 support again, the decline may continue to $24,800.
$BTC is currently trading around $29,900.
