Bitcoin Price Prediction as BTC Spikes Above $18,000 For The First Time in 30 Days and Falls Back Down – Time to Buy the Dip?
In our Asian session Bitcoin price prediction, we predicted BTC would fall further to complete a 61.8% Fibonacci retracement at $17,440 before rebounding. BTC has dropped to trade near $17,500; closing candles above this level can cause a bullish bounce.
The aggressive FOMC and Fed rate hike decisions may be one of the main causes driving a bearish trend in Bitcoin.
After seeing inflation rise, the Federal Reserve raised interest rates again on Wednesday to 4.5%. Interest rate forecasts from the Fed may be more optimistic than expected. Almost everyone on the board agrees that an interest rate of just above 5% is reasonable for next year.
Even though Powell has acknowledged that no one can predict when a recession will hit, the Federal Reserve has been more hawkish than many had anticipated. The news from the Fed seemed to have a negative impact on markets and bitcoin. A hawkish Fed might prompt a temporary sell-off in the markets as things stand.
In addition to Federal Reserve, the European Central Bank (ECB) decided to raise its main rate by only a quarter of a percentage point, from 1.5% to 2%, at its meeting on Thursday.
Also, starting in March 2023, the company plans to lower its balance sheet by an average of €15 billion ($16 billion) every month through the end of the second quarter of 2023.
Cryptocurrency markets remain gloomy due to the FOMC's hawkish stance, but there have been some positive developments that could boost prices.
This coming Friday (December 16), the Hong Kong stock market will allegedly welcome the debut of two exchange-traded funds (ETFs) that track bitcoin futures contracts listed in the United States. These products will be Asia's first exchange-traded fund (ETF) to hold bitcoin and ether as
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