Cryptonian

02/27 03:38

Where Is the Next BTC Target?

In January, inflation rose 5.4% compared to the previous year, according to the Personal Consumption Expenditures (PCE) report released by the Bureau of Economic Analysis (BEA) on February 24.

Core inflation, which the Federal Reserve prefers to use for measuring inflation, increased by 4.7% since January 2022. The US Dollar Index (DXY) reached 105.26, its highest level since January 6, reflecting the impact of rising inflation.

The Federal Reserve has set 2% overall inflation as its target, and it is anticipated that more interest rate increases will occur to address inflation. As a result of the potential rate hikes, the majority of the market anticipates the Federal Reserve to continue increasing interest rates. 

When the PCE data revealed a 5.4% increase in inflation in January, BTC/USD decreased, indicating Bitcoin's sensitivity to rising interest rates.
On February 26, BTC/USD began trading at $23,177.00. Currently, it is trading at $23,245.00, marking a 0.78% increase in the last 24 hours. The highest value of BTC/USD in the last 24 hours was $23,302.00, while the lowest value was $23,083.00. However, the value of BTC has decreased by over 5.5% in the past week. 

The BTC/USD pair's immediate support level is at $22,800, and if it breaks below this level, it could potentially expose the price of BTC to the next support area at the $22,150 level.Bitcoin is still facing resistance at the $23,500 level, while its immediate support level remains at $22,800. A break below the support level could expose BTC to the next support area at $22,150. 

However, since the BTC/USD pair has entered the oversold zone, there is a chance that BTC may rebound and break through the resistance level at $23,500, potentially resulting in a price of $24,250.

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