Bitcoin started attracting buyers after it began to float around the $18,000 price level. BTC quickly climbed the chart two weeks later. However, the coin’s technical outlook suggested that the bears hadn’t given up just yet.
BTC could cross the $20,000 price level if the bulls are able to maintain their momentum in the coming trading session. Once the bulls break the $20,000 barrier, a rally towards the $22,000 price level cannot be ruled out.
At the time of writing, BTC was trading at $19,120 and was down by more than one percent in the last 24 hours.
The continuation of its harsh stance by the Federal Reserve and a hike in interest rates resulted in a significant sell-off in the crypto market. The prospect of a recession has also increased as a result of the Fed’s position.
FED to soon change course?
As reported by Bloomberg, University of Pennsylvania professor Jeremy Siegel predicts that the stock market will rise by 20-30% in the coming year as it is currently undervalued. He believes the Federal Reserve is killing the market’s enthusiasm.
The general stock market and the cryptocurrency market have a close relationship. Cryptocurrency assets have a beta of 2 in comparison to the overall stock market, according to Coinbase Research. In other words, the price of cryptocurrencies will fluctuate by two times as much as the overall market.
Research from Coinbase suggests that the crypto winter was primarily about a macroeconomic perspective rather than a crypto one. According to Siegel, the cost of inflation to the economy outweighs the risk of recession.
He also emphasizes that the Fed will soon change course if it adheres to long-term patterns. He contends that the central bank needs to give the interest rate increase some time to take effect.
