Bitcoin’s price (BTC / USD) fell Monday after rising to its highest level in three months over the weekend. The coin fell to $ 46,480, slightly below the weekend high of $ 48,130.
Bitcoin rally subsides
Bitcoin price has seen strong upward momentum in the past few weeks. As a result, it rose from under $ 30,000 to a high of more than $ 48,000 over the weekend.
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The coin’s total market cap has surged to more than $ 874 billion, according to data compiled by CoinMarketCap. The value of all coins tracked by the company is down over 2 trillion for the first time in two months. $ increased.
There are several catalysts as to why the price of BTC has risen lately. First, there are signs that more and more companies are taking an interest in cryptocurrencies. Companies like Tesla, SpaceX and MicroStrategy have already invested billions in Bitcoin.
A few weeks ago, Amazon announced it was hiring an expert to lead its cryptocurrency initiatives. At the same time, there were rumors that the company was considering accepting the coin on its marketplace. The company denied these rumors.
Meanwhile, Walmart announced over the weekend that it would be hiring a director for cryptocurrencies. That means the largest American retailer is interested in the industry. This is positive because other companies are likely to join these companies.
The main catalyst for Bitcoin price this week will be a speech by Jerome Powell and the Federal Open Market Committee (FOMC) minutes. Powell’s speech on Tuesday is significant because it comes at a time when some Fed officials are already hinting at a reduction in bond purchases.
A speech by the Chairman of the US Federal Reserve on the subject of “tightening monetary policy” is therefore important, as the BTC price tends to develop well in an environment of loose monetary policy.
Bitcoin price forecast
The 4-hour chart shows that the BTC price rose to a high of $ 48,095 over the weekend. It seems like it encountered strong resistance at this level and formed a double top pattern. It stays slightly above the 25- and 50-day exponential moving averages (EMA).
However, it has fallen below the key support level at $ 46,760 while the Relative Strength Index (RSI) has declined to around 50. As such, the price of the coin is likely to fall slightly as traders target key support at $ 45,000. Still, the overall outlook for BTC remains optimistic.
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