Bitcoin Price Prediction as BTC Consolidates at $23,800 – Here’s where BTC is heading now

Bitcoin’s price has consolidated around $23,800, leaving traders and investors wondering where it will go next. As the market continues to stabilize, analysts and pundits are making predictions about what the future holds for Bitcoin’s price.

In this article, we are going to take a closer look at the current state of the market and examine various factors that could potentially affect Bitcoin’s price movement in the coming days and weeks.

IMF Directors Warn About Crypto Risks

The IMF Executive Board sees the use of crypto assets as a threat to the global monetary system. They warned of possible implications for monetary policy, cash flow management measures and fiscal concerns.

The IMF recommends member countries to take appropriate measures to counteract the growing popularity of cryptocurrencies. The board advises governments against adopting digital coins as legal tender, as seen in the recent adoption of Bitcoin by El Salvador and the Central African Republic.

Strong macroeconomic policies and credible institutions and monetary policy frameworks are essential and the Fund will continue to provide advice in these areas. The International Monetary Fund (IMF) has warned that the increasing use of cryptocurrencies poses a risk to the global monetary system, with the potential to undermine monetary policy, evade capital flow management and raise tax concerns.

The IMF also advises against governments declaring cryptocurrencies legal tender, although some countries such as El Salvador and Central African Republic are adopting bitcoin as official currency. The IMF’s cautionary stance on cryptocurrencies may lead to increased scrutiny and regulation, which could impact the acceptance and value of Bitcoin and other cryptocurrencies.

Bitcoin falls as US PCE inflation data foreshadows rate hike expectation

Bitcoin (BTC) slipped back to $23,000 on Friday, shortly after the release of the Personal Consumption Expenditure (PCE) Price Index, which showed January gains of 5.4% yoy and 0.6% mom. The higher-than-expected figure means the Federal Reserve’s fight against rising inflation is likely to continue.

BTC started around $24,000 on Friday and stayed above $23,800 until the release of January PCE stats at around 13:30 UST. After the release, the value plummeted, falling as low as $23,000 in just 30 minutes. At the time of writing, it’s worth $23,217.

Bitcoin’s drop is accompanied by a 3.3% drop in Ethereum (ETH), a 4.6% drop in Cardano (ADA) and a 7.1% drop in Polkadot (DOT). Meanwhile, the NASDAQ and S&P 500 are down 1.81% and 1.25%, respectively.

According to Coinglass data, the crypto market decline has resulted in over $110 million in liquidations in the past four hours alone, including $44 million in Bitcoin and $22 million in ETH liquidations. The largest single liquidation occurred on BitMEX for $7.52 million on an XBTUSD deal.

The PCE is the Fed’s preferred measure of inflation (CPI) rather than the consumer price index. The former excels at tracking how customers’ purchasing behavior evolves over time, and the central bank considers it the best indicator of where inflation is headed in the future.

bitcoin price

As of now, the live price of bitcoin is $24,050, with a trading volume of $31 billion in the last 24 hours. It currently holds the top spot on CoinMarketCap with a live market cap of $464 billion.

Bitcoin is currently priced at $23,873, with a trading volume of $28.6 billion in the last 24 hours. Bitcoin’s price is down almost 2% over the same period.

From a technical perspective, bitcoin is likely to find immediate support around $23,600 and a break below it could take BTC price to $23,375.

Bitcoin price chart – Source: Tradingview

On the bullish front, if bitcoin successfully breaks out of $24,100, it could potentially reach $24,500 or $25,200. However, the RSI and MACD indicators are still in the sell zone, so it is important to keep a close eye on the range from $23,600 to $23,350. If the price closes above this range, potential buying opportunities may arise.

Bitcoin’s current price is $23,873, with a 24-hour trading volume of $28.6 billion. It has seen a nearly 2% drop in the last 24 hours. From a technical perspective, Bitcoin is expected to find immediate support around $23,600. If it falls below this level, it could potentially take BTC price to the $23,375 level. Bitcoin price chart source is Tradingview.

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Bitcoin alternatives

Investors looking to buy into Bitcoin should consider alternatives with more room for growth in the short term. Cryptonews has published an in-depth analysis of the top 15 cryptocurrencies for investors to consider for 2023. Click below to find out more.

Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.

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Cryptocurrency Price Tracker – Source: cryptonew

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