While investors anticipated important inflation statistics later in the week that could affect cryptocurrency prices, Bitcoin rose on Monday evening, surpassing the crucial psychological level of $30,000. At $30,431, a new monthly high was formed and the price is currently consolidating its gains.
According to a trader and analyst by the name of Tedtalksmacro, the true resistance is located around $34,000. When discussing the impending challenges, he specifically mentioned the US CPI statistics and the Fed meeting.
Taking to Twitter, he wrote, “Bitcoin now trading north of $30k. If you’ve rode the wave so far, it’s probably a good time to think about de-risking, although I believe that true resistance is somewhere around $34k. Overall an environment that is conducive to buying the dip, but doesn’t get caught overextended into the highs.”
If Bitcoin has to surpass the $34k resistance level, then it has to first overcome the initial hurdles. Price growth may be possible if a strong move is made above the $30,500 resistance. If the given scenario rolls out, the price might increase to around $31,200. The $32,000 mark represents the next significant resistance.
Of the top 10 digital assets, Bitcoin is by far performing the best. This may be partially due to traders expecting Federal Reserve Chairman Jerome Powell to reduce interest rates in response to the financial crisis, which would increase the attraction of risky assets like Bitcoin.
At the beginning of the year, Bitcoin created an environment of a scare when it was trading at $16,600 levels. Despite what seems like never-ending regulatory issues for the cryptocurrency sector, it has made a comeback and is now up over 80%. At the time of writing, Bitcoin is slightly trading above the $30k level.
Source: https://coinpedia.org/bitcoin/bitcoin-price-update-analyst-issues-warning-as-btc-price-trades-above-30k-advises-traders-to-de-risk/