BTC is currently still in an uptrend and recently managed to cross the line for a short while 25,000 dollars. The last time the major cryptocurrency was traded at this price was 9 weeks ago. Will the trend continue?
One of the main reasons why BTC has surged may be inflation, which fell month-on-month for the first time in 2 years. However, cryptocurrencies were not the only ones to react to it, and the stock market also reacted. On the other hand, there is the risk of rising interest rates, which can cause divestment cryptocurrency.
BTC will close the flag soon. Source: TradingView
BTC will close the flag
However, the question remains how long the current slightly increasing trend will continue. Price during an uptrend creates a downtrend volumes of buyers, which represents negative signal. This will probably close the current flag down. Additionally, this flag will soon be closed as it approaches the key one resistance.
Despite the fact that BTC was considered a hedge against inflation, the reality showed otherwise. Cryptocurrencies are facing an economy in recession and inflation for the first time and have reacted similarly to the stocks they have been correlated with. Reaching $25,000 appears to be just the first small step on the way back to new highs. The $17,600 low may not have been the last, however.
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