- Bitcoin price shelves the comments from Fed speakers about the current rate path of the US.
- BTC is set to jump in a calm week as Fed speakers enter the blackout period before the first US central bank meeting this year.
- Traders are gearing up for another leg higher towards $29,000, bearing a potential 25% of topside gains.
Bitcoin (BTC) price is set to start the week on the front foot as traders let the dust settle after a volatile previous week during which BTC printed a staggering 7% price increase. With a mild data week ahead and Fed speakers entering the blackout period before the first US central bank meeting, Bitcoin bulls have a highway paved out for them to hit $29,000 by the end of this week and book another 25% in this recovery.
Bitcoin price is the comeback kid for the week
Bitcoin price jumped substantially on Friday, breaking above $21,969, and passing the weekend by consolidating the level. With $23,000 nearby, it looks like traders are taking one big figure after another and are trading from one psychological level to the next, keeping their finger on the button to take profit at any headwind that could spark up. With the economic calendar quite light this week, bulls are seeing headwinds ease and are gearing up for more highs.
BTC first needs to move away from $23,000 and towards the next key level near $23,878. This pivotal level goes back to May 12, 2022, as the low in the falling knife. If bulls can break and consolidate above it in a repeating pattern as was performed over the weekend for $23,000, the forecast for this month could be for a move up towards $29,000 before hitting an important cap but still bearing 25% gains on the back of that.
BTC/USD daily chart
The risk to the downside comes with the elements already mentioned in the second paragraph of this article: the psychological levels. The growing dislocation between the US central bank and the markets is a growing concern and a clear and present danger for this rally. It would only take one economic data print to crush the hopes for the goldilocks scenario markets are after and prove the Fed right in its hawkish bias, with massive profit-taking and bulls being stopped out, BTC could sink back towards $19,036.
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