FxNews – Bitcoin‘s value has dipped following a significant inflation report. As we anticipate news on approving a US Bitcoin ETF, it seems China is ready to adopt a Central Bank Digital Currency (CBDC).
A top Chinese official hinted that CBDCs could be a valuable asset that earns interest, not just a means for settlement. If the digital yuan starts offering interest on account balances, it could set a new standard for all CBDCs. As CBDC adoption becomes more apparent in advanced economies, it might challenge the long-term growth prospects for Bitcoin.
Bitcoin Struggles to Break $28,480 Resistance Level
Bitcoin, the world’s leading cryptocurrency, has recently experienced a downturn. Despite attempts to surpass the $28,480 mark, the bulls fell short. This failure to close above the Ichimoku cloud resulted in the daily chart’s RSI indicator flipping below 50. Bitcoin is trading slightly above the pivot, indicating a bearish market sentiment.
A closer look at the BTCUSD 4H chart provides a clearer picture of the current Bitcoin market situation. The RSI indicator is hovering in the oversold area, and a hammer candlestick pattern emerged from yesterday’s trading session.
These technical indicators and price action trends suggest that Bitcoin might enter a correction phase. The key to this potential correction lies in the $26,449 support level. A correction will likely occur if this support can maintain the Bitcoin price above it. In this scenario, waiting for the Bitcoin price to rise and testing the broken support around $27,234 would be prudent.
This level presents a decent demand zone for bears to add selling pressure on Bitcoin. By strategically waiting for this support test, traders can capitalize on this bearish momentum and potentially profit from the market’s movements.
- Next read: Central Bank Digital Currencies (CBDC)
Conclusion
In conclusion, while the current Bitcoin market analysis shows a bearish trend, there are opportunities for strategic trading. By understanding these market dynamics and making informed decisions, traders can navigate the volatile landscape of cryptocurrency trading.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
