Bitcoin (BTC) is facing one of its toughest tests since hitting an all-time high of $64,789 in November 2021. As the leading cryptocurrency tries to resist selling pressure, Huobi Research Institute analysts consider BTC to be in very critical territory. Analysts made statements regarding the changes that may occur in the coming period, based on macroeconomic factors and technical indicators that may affect the current price of BTC. As Kriptokoin.com, we are providing the details…
Macroeconomic factors that can affect Bitcoin price
William Lee, one of the leading researchers at Huobi Research Institute, said, “The market is in a critical region and this is the future price direction of Bitcoin. will determine,” he said. In Europe, the conflict between Russia and Ukraine has put Bitcoin on a strong rise as both sides try to use the leading cryptocurrency to their advantage. While Ukraine has raised significant amounts of donations using crypto, Russian organizations have again considered using Bitcoin to circumvent sanctions. Russian citizens have also used it to hedge their wealth against the rapidly depreciating ruble, which has increased the value of Bitcoin. According to the research institute, the actions of the G7 countries against Russia to narrow the crypto space could be bad for the price of Bitcoin.
Analysts also think that the Fed’s proposal to increase interest rates will also create another downside for Bitcoin. “The US Consumer Price Index (CPI) has gradually recovered and the change in monetary policy is inevitable,” the institute said in its report. Rumors that the central bank will increase interest rates by up to 4 percent are increasing.
What do the technical indicators point to for BTC?
Huobi Research Institute highlighted some of the techniques that paint a delicate picture for Bitcoin, as well as macro factors. He stated that BTC has experienced two peaks since starting its third bull run in the second half of 2020 and is currently on track to reach its third peak, in line with the “Triple Peak” pattern.
The Institute named the new trend ‘Wave B’, largely triggered by the Russian-Ukrainian conflict. They argued that if the trend continues, a sharp decline in prices can be expected after the transition from Wave B to C. William Lee said:
If Bitcoin price continues to improve and form the third peak, wave B will continue, otherwise the market will fall even more sharply. Currently the current RSI index is below 50 which is indicative of a weak market. However, this figure has not yet fallen below 30, which means that the market is not yet in an oversold state.
5607
