Where Is the Next BTC Target as BTC Hits Key Support Level in the Bitcoin Price?

The price of Bitcoin has dropped by almost 4% over the last week, reflecting the recent volatility the cryptocurrency has been going through. BTC is currently edging closer to a crucial support level, and analysts are carefully watching the market to see where the next target for the digital asset will be.

Examining the variables that may have an immediate and long-term effect on the price of bitcoin is crucial in this context.

How Increasing Interest Rates Impact Digital Assets Like Bitcoin

According to the Personal Consumption Expenditures (PCE) report published by the Bureau of Economic Analysis (BEA) on February 24, inflation increased 5.4% in January compared to the prior year.

Since January 2022, core inflation has risen by 4.7%, the preferred inflation measure of the Federal Reserve. As a result of increasing inflation, the US Dollar Index (DXY) climbed to 105.26, its highest level since January 6.

In order to combat inflation, more interest rate increases are anticipated. The Federal Reserve has established a target of 2% overall inflation. The majority of the market believes that the Federal Reserve will keep raising interest rates as a consequence of the potential rate hikes.

BTC/USD fell after the PCE data showed a rise in inflation of 5.4% in January, demonstrating Bitcoin’s sensitivity to rising interest rates.

Bitcoin Price
BTC/USD started selling at $23,177.00 on February 26. Its current price of $23,245.00 represents a rise of 0.78% over the previous 24 hours. In the previous day, BTC/USD traded at a high of $23,302.00 and a low of $23,083.00. But over the last week, BTC’s worth has dropped by more than 5.5%.

The immediate support level for the BTC/USD combination is $22,800; if it is breached, the price of BTC may be exposed to the next support area at $22,150.

The $23,500 level continues to be a point of resistance for bitcoin, while the $22,800 level continues to be its direct support. If the price of Bitcoin breaks through the support level, it may reach the next support level at $22,150.

However, given that the BTC/USD pair has crossed into the oversold region, there is a possibility that BTC will bounce back and surpass the resistance mark at $23,500, which could lead to a price of $24,250.