Bitcoin (BTC) and the overall cryptocurrency market experienced a decline in trading on Tuesday. Investors may be reevaluating their strategies in light of the Fed's expected decision to maintain interest rates, given ongoing high inflation and escalating global tensions.
Data from TradingView showed that Bitcoin bulls attempted to surpass the $53,000 resistance level on Tuesday morning. However, they were hindered by the bears and they moved back towards the $51,200 support level.
Last week, Bitcoin traded above $50,000 for the first time in more than two years, according to Matteo Greco, a research analyst at Fineqia International, indicating strong momentum following the approval of BTC Spot ETFs. BTC last traded above this level in December 2021, shortly after reaching an all-time high of $69,000 in November of the same year.
This period was later identified as the beginning of a significant downtrend that continued throughout 2022, causing the price to drop to around $16,000 by the end of the year.
“Bitcoin price expectations for a Bitcoin halving event this year should be based not only on historical patterns of pre- or post-halving price increases, but also on the evolving landscape of BTC integration into traditional finance,” said Mikkel Morch, founder of digital asset investment fund ARK36. said.
Morch said the macroeconomic environment, characterized by broad fiscal policies and a move towards digital currencies, “could amplify the impact of the halving on the Bitcoin price.” This backdrop presents a unique combination of factors that could push Bitcoin to new highs or perhaps test its volatility in unpredictable ways.
*This is not investment advice.
