BoJ in the footsteps of the Fed ? Bitcoin (BTC) price takes a dive above $17,000, boosted by an unexpected move by the Bank of Japan. Nevertheless, the cryptocurrency is not really managing to regain key levels.
Bank of Japan Raises Rates: Greens Hiding Reds Ahead of Bitcoin Price?
Bitcoin price is rising up to $17,057 on Bitfinex today, December 20, 2022. The cryptocurrency is trading at $16,881 at the time of writing. Its price is currently registering a daily increase of 2.63%.
Bitcoin benefits from weaker dollar (DXY) as Bank of Japan (BoJ) surprises markets, increase the rate of its bond interest.
Although Bitcoin benefited from this move by the Bank of Japan in the short term, traders and analysts suggest that this rate hike will hurt all markets, especially those with risky assets, in the coming days or so.
The trader Christian H. Cooper has thus noticed as a minor change in Bank of Japan policy “has huge consequences that will take weeks to appear”. The trader predicts one in particular decrease in stocks for weeks, as well as “chaos”.
>> Not your keys not your bitcoins! Choose a foolproof hardware wallet, choose Ledger (commercial link) <
Resilient averages, thicker red cloud and on a downward trajectory
Despite this bullish momentum from Bitcoin boosted by dollar weakness, the cryptocurrency failed to touch the 30-day exponential moving average – in orange in the graph below – which stands at $17,123.
After crossing this level on December 13, Bitcoin rose above $18,000. He lost it on December 16, only to later recover to around $16,300.
And while Bitcoin did manage to break through the 30-day simple moving average of $16,860 – line wiolette – currently the cryptocurrency is not displayed no conclusive signs of a lasting recapture of this level, which has acted as resistance for several days.
Given these moves, can Bitcoin still sustainably return to above $17,000 in the very short term, or will pressure increase and further complicate such a rise?
The Bitcoin price chart above in daily units shows that the Ichimoku Cloud, which is currently a major resistance area for the cryptocurrency, thickens and could go down to $17,000 in the next few days.
Thus, at this stage, a recapture of $17,000 seems difficult without an exogenous factor that would have a strong enough impact to allow Bitcoin to cross the resistance lines at the simple and exponential moving averages of the 30 days, as well as this red cloud.
The $14,000 scenario currently seems more credible than a sustained rally above $17,000. And even if the cryptocurrency manages to bounce back above this level, a bullish continuation looks even more complicated.
In crypto, do not skimp on caution! So to keep your crypto assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Don’t wait to secure your capital (commercial link)