• Bitcoin price gained 1.5 percent after the Fed announced a rate hike to 5.50 percent to combat inflation.
• Altcoins have been gaining more popularity and market share, which is impacting Bitcoin’s dominance and could potentially hinder its rise.
• Crypto analyst Captain Faibik predicts that BTC bears will eventually breach the bear market rally and push the price down towards the support zone around $25k, with a possible 15-20% correction in the coming weeks.
Bitcoin Price Outlook
The daily traded volume of Bitcoin (BTC) surged by approximately 23%, reaching around $13 billion, indicating the potential for Bitcoin’s value to retest resistance level between $31k and $32k in the near future. However, altcoins have been gaining more popularity and market share, which is impacting Bitcoin’s dominance and could potentially hinder its rise.
Fed Rate Hike To Combat Inflation
Bitcoin price gained 1.5 percent after the Federal Reserve (Fed) announced a rate hike to 5.50 percent to combat inflation. This rise in interest rates came as a response to rising consumer prices due to increased demand during the reopening of economies worldwide following COVID-19 lockdowns earlier this year.
Altcoin Popularity Impacting Bitcoin Dominance
As altcoins gain traction, investors are diversifying their portfolios, which could further decrease Bitcoin’s dominance in comparison with other cryptocurrencies; it has already declined from almost 70% last week to 49.77% on Thursday.
Crypto Analyst Predicts A Correction
Crypto analyst Captain Faibik conducted an analysis predicting that BTC bears will eventually breach the bear market rally and push the price down towards the support zone around $25k with a possible 15-20% correction in coming weeks – despite his bearish outlook, many analysts believe that Bitcoin’s price will not drop below $20k again due to increased demand from institutional investors supporting its value overall.
Conclusion
Overall, while there is potential for Bitcoin’s value to retest resistance levels between $31k and $32k in near future, achieving a new high for 2023 might prove challenging due to various headwinds such as altcoin popularity reducing Bitcoin’s overall dominance; however crypto analyst Captain Faibik predicts that even if this happens there is unlikely to be much fallback as institutional investor demand remains strong enough keep its value above $20k mark throughout these corrections