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Why the Bitcoin Price Bounced Back Above 19,500 And Where it Goes Next?

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During the US session, Bitcoin price returned near $19,000 as market observers once again questioned whether the largest cryptocurrency would emerge as a safe-haven investment during periods of excessive inflation.  BTC has gained over 3% in the last 24 hours and nearly 6% in the previous seven days.

In the current gloomy sentiment-filled market cycle, the macroeconomic climate has increasingly impacted the cryptocurrency market.  After a major sell-off caused by the government’s tax-cut plan, Bitcoin (BTC) rebounded on Wednesday, particularly during the US session. Most of the uptrend came after the Bank of England announced it would buy bonds amid severe inflation.

Central banks worldwide, including the US, are trying to discourage investment in high-risk assets like stocks and cryptocurrencies; the Federal Reserve has pledged to pursue aggressive interest rate hikes.

Bitcoin Price Bounced Back Above 19,500

The current Bitcoin price is $19,765.07, and the 24-hour trading volume is $41,034,451,729; Bitcoin has increased by 3.06% in the previous 24 hours.

CoinMarketCap now ranks first, with a live market cap of $378,794,883,763. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,164,868.

Icebreaker Finance Announces a $300 Million Lending Pool

It appears that initiatives to provide loan funding to bitcoin miners facing a challenging business climate have increased during the past week. The goal of Icebreaker Finance, which unveiled a $300 million financing pool for bitcoin miners last week, is to provide long-term cost stability in electricity rates for a certain market segment.

The company’s CEO and founder Glyn Jones told The Block:

  • “We don’t see this pool providing some kind of index exposure to the whole market”
  • “What we’re looking for is businesses are going to be resilient through a wide range of market conditions.”

Icebreaker Finance support for Bitcoin miners is taken as good news for cryptocurrency, causing the Bitcoin price to rise.

CBDC vs. Bitcoin: Financial Regulators’ Stance

Financial regulators are considering Central Bank Digital Currencies (CBDC) around the world, but advocates of virtual currencies are pushing the US to reject proposals for a digital dollar.

To compete with China’s digital yuan, advocates for a CBDC in the United States have ramped up their efforts. Because of the growing interest among nations to exert some control over the virtual currency markets, a CBDC provides governments with the means to do so.

According to the US Bitcoin Policy Institute, US regulators should ignore CBDCs and instead focus on Bitcoin and other stablecoins. On Tuesday, the group published a white paper detailing the ways in which state-issued digital currency would compromise users’ privacy and financial independence.

The group claimed that cryptography represents a departure from the status quo and that CBDCs are not the solution to securing individual liberties. A spokesperson for the Texas Bitcoin Foundation, Natalie Smolenski, has said that CBDCs will not address any fresh issues and has asked the United States to take a new path.

Where Bitcoin Price Goes Next?

Despite a mix of positive and negative fundamentals, Bitcoin, the world’s leading cryptocurrency, is trading choppy in a narrow range of $18,400 to $20,033. Although BTC has crossed above $19,000, this is not a confirmation of a continuation of the bullish trend.

Bitcoin Price Chart

Bitcoin Daily Price Chart – Souce: Tradingview

On the plus side, Bitcoin’s immediate resistance remains at $20,333. A surge in BTC demand could cut through this resistance level and push the price up to $21,550. Further up, Bitcoin’s next target is likely to be the $22,766 level. On the downside, the double bottom pattern near $18,444 is likely to act as a support.

Although the RSI and MACD indicate a buying trend, the 50-day moving average hovers around $20,700, indicating a bearish bias in BTC. Consider taking advantage of a volatile session by selling below $20,333 and buying above $18,444 until this range is broken.

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