Bitcoin has been seeing one of the worst bearish trends in recent times. In fact, at one time, the price of BTC came down below $20,000. However, before that, the price of BTC briefly touched the $25,000 mark. After that, the price kept falling rapidly, as rapid liquidation set in. Therefore, 2022 has been a troublesome year of BTC investors.
However, this week is going to be an essential one for Bitcoin. In fact, after a long-running bearish trend, the BTC market is showing a bullish trend. The price closed at $21,800 last week. In fact, this was the highest price since mid-August. Therefore, the downward trend seems to approach its end. However, volatility will play an important role in the future. Moreover, the Ethereum merger is nearing. In addition, the August Consumer Price Index (CPI) data will put the US inflation rate under scrutiny, on the 13th of September. Thus, the market will be unpredictable. Therefore, if you wish to know about various important issues about Bitcoin, then this article is the perfect stop for you. Keep reading this article to know more about the BTC market.
BTC Records A Solid Weekly Close
After a miserable run, Bitcoin ended the last week on a positive note. In fact, BTC/USD even managed to avoid a last-minute correction into the candle close. This is confirmed by the data obtained from TradingView and Cointelegraph Markets Pro.
On the 11th of September, the price of BTC briefly crossed $21,800. In fact, this very fact has laid a solid foundation for the volatility this week. In fact, at the time of writing this article, the BTC price sits at $22333.41.
However, a more important bear market level awaits the BTC/USD. However, the investors have been really been caught by the spike to $22,350 on Bitstamp overnight. Yet, many investors posted on Twitter to warn us about some major resistances that might come across BTC.
The CPI And The BTC Price
The Fed is providing two major talking points about the price of BTC. In fact, the August CPI data will be coming out on the 13th of September. Therefore, everyone is hoping for a decreased trend of inflation. In fact, July’s data showed that a peak has been achieved. Therefore, this time such speculations are expected.
If a decreased trend hits the market, then that will be a blessing to BTC and other risk assets. However, the FedWatch Tool of the CME Group suggests something else. The tool states that the Federal Open Market Committee of FeD is likely to re-impose a 75-basis-point interest rate hike. This hike is likely to come at the end of the meeting next week.
However, dollar watchers believe that the risk asset comeback is set to arrive in the coming days.
According to Donald Pond, the Phoenix Copper executive, the two most important factors right now are the USD and DXY charts.
The Ether Merge
The upcoming Ethereum merger on September 15, is likely to act as a price trigger. This merger will see Ethereum’s hashing algorithm moving from PoW to PoS. In fact, various speculations are there on the internet and social media about the immediate result of the merger. To be specific, the analysts are worried that the investors might bring the Bitcoin market down, by selling “the news” after the merger.
On September 10. DecenTrader came out with an update. In that update, the trading platform stated that there is a need for caution and avoidance of an “up-only” mindset. The update also brought in the example of what happened in 2017.
All-Time High Hashrate And Difficulty
The fundamentals of the Bitcoin network have been bullish recently. In fact, this week has seen even higher trends. The hash rate and Bitcoin mining difficulty are approaching their all-time highs. As per BTC.com, at the next automated readjustment, difficulty will increase by 3%.
In fact, the miners have been increasingly adding hash rates. This has increased the har rate of the Bitcoin network.
Concluding Lines
Though the Bitcoin network is showing a bullish tendency, yet the fear of trend reversal remains. In fact, as of 12th September, the Crypto Fear & Greed Index has entered the zone of “extreme fear”. Therefore, we have to be very careful to watch in what direction Bitcoin moves.
Also read: How To Avoid 3 Major Mistakes When Trading Cryptocurrency
