Bitcoin’s Rally Potential: Technical Signals and Market Factors Point to Upside
Yann Allemann, the co-founder of Glassnode, has expressed the view that Bitcoin may be poised for a rally.
Allemann recently pointed out on Twitter that Bitcoin’s shorts have been depleted after several unsuccessful attempts to breach the 200-day simple moving average (SMA), a crucial support level.
#Bitcoin bottom is in
Shorts getting exhausted after failing numerous attempts to break below 200SMA, which is a solid support.
50SMA bullish crossover over 200SMA, it's a matter of when #BTC goes off https://t.co/pfyjsmCGyE pic.twitter.com/ZmKVQiQwYz
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) May 22, 2023
Additionally, the 50-day SMA crossing above the 200-day SMA in a bullish manner could indicate an imminent surge in the price of Bitcoin. These optimistic observations come at a time when Jamie Dimon, the CEO of JPMorgan Chase, has issued cautionary statements warning of potentially higher interest rates.
During the bank’s investor day, Dimon suggested that rates might rise beyond the current 5% and even reach as high as 7%. Such remarks from Dimon could imply a bearish environment for risk assets like Bitcoin, as they could be affected by a stronger US dollar resulting from increased interest rates.
READ MORE: Bitcoin’s Price Range Narrows: What to Expect – Market Surge or Correction?
Moreover, the Federal Reserve has signaled a tightening monetary policy by recently raising its benchmark interest rate from 5% to 5.25%. The central bank is presently deliberating on whether to proceed with additional rate hikes scheduled for June, adding to the uncertainty and potential downward pressure on the cryptocurrency market.
At the time of writing Bitcoin is trading at around $27,406. Despite possible challenges ahead, Allemann’s analysis suggests a potential upward trend for Bitcoin.
It remains to be seen how the market will respond to both the anticipated decisions of the Federal Reserve and the supportive technical signals identified by Allemann. Investors and observers closely monitor the flagship cryptocurrency in anticipation of future developments.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
