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What’s in Store for Bitcoin as it Remains at $30K?

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Bitcoin (BTC), the major cryptocurrency, finally breached the $30,000 level last week after ten months of anticipation, thanks to growing optimism that the US Federal Reserve will soon end its aggressive campaign to tighten monetary policy.

As of April 17, BTC was trading at $29,883, down 3.62% from the 90-day high of $31,005 achieved on April 14.

Let’s explore the factors driving Bitcoin’s price movement, the role of the Federal Reserve, and the evolving market landscape.

The role of the Federal Reserve in the rise of Bitcoin

The recent rally in the price of Bitcoin has been driven by a shift in monetary policy by the US Federal Reserve.

Investors believe that a more stable and predictable environment will emerge as the central bank eases interest rate hikes to ease pressure on the banking sector.

This optimism stems from the turmoil the banking sector went through in March, which led to increased expectations of Fed leniency.

The closely watched US Nonfarm Payrolls (NFP) report on Friday showed that employers maintained a solid pace of hiring in March, indicating a still resilient economy.

Market factors and future expectations

Several factors can influence the path of the Bitcoin price as the market develops.

Some experts, such as DonAlt, a technical analyst who predicted the 2023 bull market, believe that bitcoin is poised to surge towards the $50,000 level.

However, the possibility of a correction in Origin cannot be ruled out soon.

Meanwhile, the profitability of miners and the state of miners in the network is crucial to the movement of Bitcoin price.

The Puell’s adjusted multiplier, a metric that measures miners’ profitability taking into account the difficulty of mining bitcoin, is currently at 0.88.

A value less than 1 indicates that the miners still need to be profitable, which may affect the price of the asset.

In addition to on-chain metrics and technical indicators, sentiment among traders plays a vital role in bitcoin’s price rally.

Some experts note that the recent rally to $30,000 lacks the “crypto-mania” seen in previous bullish waves, suggesting a possible correction may be on the horizon.

With 700,000 wallets holding 390,000 BTC in a transaction ($29,330 – $30,200), we have a very strong support level to watch. On the contrary, 770,000 wallets were loaded with 360,000 BTC ($30,270 – $32,200), which indicated a difficult resistance area.

Meanwhile, the recent rise in the fee-to-reward ratio signals the beginning of a new accumulation cycle in the bitcoin market, reminiscent of the patterns observed in 2019 and 2020.

This development points to a possible price rally in anticipation of the 2024 Bitcoin halving, setting the stage for a potentially fiery market performance.

Amidst this, CoinCodex expects BTC to maintain its bullish momentum and reach $32,729 by May 14, which implies an upside of 10% from the current price levels.

way ahead

In conclusion, as the cryptocurrency continues to rapidly evolve, all eyes are on the next Bitcoin halving event in 2024.

Current market indicators, such as the fee-to-reward ratio, indicate that a new accumulation cycle is underway, mirroring patterns seen in previous years.

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