- Bitcoin undergoes selloff after Fed’s hawkish tone.
- Key economic events this week include the release of the Fed’s preferred PCE inflation data.
- BTC price eyes $25,000 next.
YEREVAN (CoinChapter.com) — Bitcoin (BTC) logged a topsy-turvy week with an excellent start, meeting a mid-week selloff that continued into the weekend.
Traders initially bought, hoping the Federal Reserve would pause its interest rate hikes. While the US central bank did pause, its dot plot mentioning one more rate hike in 2023 and to keep them higher throughout 2024 dried the upside bias in the Bitcoin market.
Instead, traders moved toward the safety of the US dollar, with the greenback’s benchmark index rising 0.27% in the week.
An idea of higher rates has boosted the dollar’s valuation versus a basket of top foreign currencies lately. In turn, a strengthening dollar has weakened its appetite for non-yielding assets like Bitcoin and Gold.
Key Events in the Week Ahead
Heading into next week, it might seem quieter after the eventful Central Bank meetings. Watch for US Durable Goods Orders after a 5.2% contraction, potentially impacting the US economy and the dollar’s strength against Bitcoin.
Later in the week, expect a slight US GDP revision to 2.2%. The focus will be on the US PCE data for a clearer inflation picture. Any significant deviation from the estimated 0.2% MoM print could sway the US dollar.
Fed speakers may cause short-term market swings. Absent major changes, Bitcoin prices may hold steady in the near future.
Bitcoin Technical Analysis And Final Thoughts
From a technical perspective, Bitcoin has been retreating from a resistance confluence comprising the 50-day (the red wave) and the 200-day (the blue wave) exponential moving averages (EMAs) and a multi-month descending trendline resistance.
Previously, selloffs after testing the resistance confluence took the BTC price below $25,000, a psychological support level. Now, the price may repeat the same scenario while eyeing the $25,000-$25,500 as their primary downside target this week.