FX.co ★ Bitcoin has returned to the level of $31,000. What's next?

In the past week, Bitcoin has not shown any interesting movements. After a sudden rise of $6,000, the cryptocurrency has calmed down and, for the last ten trading days, is positioned just below the $31,000 level, which is strong resistance. Besides, $31,000 is the latest local maximum in the 24-hour timeframe. Therefore, it has special significance. In other words, if this level is surpassed, then chances for further growth of "bitcoin" will sharply increase. The last upward movement began from the $24,350-$25,211 area, which we have often highlighted. From a technical perspective, Bitcoin has moved almost perfectly in recent months.

Also, let's note that the upward trend line remains relevant, so the upward trend is maintained. All recent events related to the Federal Reserve are unlikely to have been or should have been supportive of Bitcoin, as Jerome Powell's rhetoric has toughened, and the Fed's rate plans have become even more "hawkish." Therefore, Bitcoin is more likely to show a new downturn than continue to rise. Let's remind you that we are skeptical about the further growth of cryptocurrency. Still, we also remind you that the market combines many players, so predicting the direction of movement is always very difficult. We follow the trend and react to its changes. Currently, there are no such changes, so the whole question is about the $31,000 level.

From the latest fundamental events, we can only highlight the US inflation report, which showed another slowdown, which should have cooled the Federal Reserve's enthusiasm for tightening monetary policy. But this did not happen. The legal dispute between the SEC and cryptocurrency exchanges Coinbase and Binance continues. Therefore the market is tense because predicting the outcome of this confrontation is impossible. At this time, technical analysis should be primary for traders, as Bitcoin again shows its ability to grow despite an unfavorable fundamental background. The current week will be very important from the point of macroeconomic reports. Still, they are unlikely to have a strong instantaneous impact on the world's first cryptocurrency rate.

On the 24-hour timeframe, Bitcoin has completed a downward correction cycle around the $25,211 level. The cryptocurrency quickly soared upwards, but the downward correction may still need to be completed. If the price turns down around the $31,000 level or there is a rebound from this level, then the decline may resume, and sales will again be relevant with the target area of $24,350-$25,211. However, if the $31,000 level is surpassed, new purchases aiming for $34,267 become logical.