Bitcoin Prices Bounce Back After Falling To 6-Month Low

The Bitcoin price has risen more than 13% in the past hour since they fell to their lowest level since July.

The market value of the world’s most expensive digital currency rose to $37.500 today, coinDesk figures shows.

The price appreciated after falling to $32,983.59 in the morning, CoinDesk data shows.

Digital currency has had a difficult few months. It lost more than half of its value in the past six months since it was valued at $69,000 last year.

Bitcoin fell over the weekend and then the digital currency increased those losses today, making it its lowest level since July 23.

[Ed Note: Investing cryptocoins and tokens is highly risky as the market is not regulated. It is possible to lose all of your investment.

The Key Role of Policy

Many analysts pointed out that the recent price movements were explained by an anticipation of tighter Federal Reserve policies and more stringent crypto regulations.

The Federal Open Market Committee (FOC) announced in December that it would lower its monthly asset purchase, beginning in January.

The central bank policy makers also projected in the same month that they would raise benchmark rates by a total three times this year.

Bloomberg reported late last week, citing unnamed sources that the Biden administration was working on an executive Order that would establish a comprehensive strategy to support U.S. federal agencies.

These government agencies have been disorganized in the past when it comes to regulating crypto and blockchain, failing to give industry participants a clear set.

Charlie Silver, Chairman and CEO of Permission.io spoke out about this situation. He stated that “The market is impacted by the anticipation of Fed moves and White House moves.”

Mark Elenowitz (President of FinTech firm Horizon) also participated.

He said that today’s selloff was due to expected rate increases by Federal Reserve and uncertainty around regulation in certain countries.

Elenowitz said it had ‘a major impact on crypto and equities generally.

“A lot of the selling seems to have already occurred, which suggests that markets are pricing in central bankers’ expected tightening.

Key Technical Levels

These are the main drivers behind bitcoin’s recent price movements. Market observers have also shed light on key levels of support or resistance.

Multiple technical analysts found support for close to $30,000.

Julius de Kempenaer is a senior technical analyst at StockCharts.com. He described it as a’very important support level because it represents the clusters of lows that were set in the summer 2021.

Elenowitz also commented, saying that it appeared as though support for Bitcoin was around $31,000.

John Iadeluca is the founder and CEO of multi-strategy funds Banz capital. He offered his perspective on the matter.

He stated that there is a significant support level at $33,000 and a lot of buying pressure that has been building throughout today’s market.

Next, the analyst outlined the key resistance of digital currency.

“The next level in resistance appears to have formed from a high level perspective at $40,000 with a smaller but more precise sell-wall having established resistance at the $37,000.500 price level.

De Kempenaer was also present.

He stated that there was some resistance at 37.5k and, more importantly, 40k. This is the old support level.

De Kempenaer stated, “Watching 30k like an hawk, it’ll have major implications either for a trigger for more acceleration lower in the event it breaks, or as the floor for market stabilization if it holds.”

“Either way, it will take some time before BTC enters a clear uptrend.

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