Bitcoin kept from falling below $ 30 thousand and began to look more convincing technically

On Wednesday, the Bitcoin rate recovered its intradaya decrease reaching 4%, and returned to $33 000. Although during the day optimists might have worried that with the release of another inflation report in the US, the first cryptocurrency would drop to $30,000 and then it would become really scary, but this did not happen.

Manufacturing inflation, same as the day beforeconsumer, continued to strengthen and exceed forecasts. Thus, debunking the thesis about its temporary nature, but by a happy (coincidence?) almost at the same time the financial world sawa transcript of the upcoming speech of the head of the Fed before Congress with a report on the state of the economy.

In it, the head of the country's monetary policy does notbegan to frighten me with changes, although he somewhat transformed his ideas about the trajectory of price dynamics. And, by the way, they can become just the element that will allow Bitcoin to reach the upper limit of the eight-week consolidation in the range of $30,000 – 40 000.

Jerome Powell continues to argue that inflationwill return to its previous values ​​after the effect of opening the economy is exhausted. However, he also admitted that in the next few months it will remain at an increased level. Moreover, he even named a benchmark for the number of jobs that the economy must close in order for the Federal Reserve to begin curtailing the quantitative easing program.

This event will be a moment of truth for everyonerisky assets, including Bitcoin (since April it has not behaved like digital gold, but has a greater connection with the monetary background). After his words, this will obviously happen no earlier than September-October, and may even be postponed until December. With further strengthening of inflationary trends, such “promises” capable of laying a mine under the dollar and forcing investors to seek salvation in cryptocurrency. Until the Fed comes to its senses and starts normalizing monetary policy.

Bitcoin is back to $ 33,000 on Wednesday and technicallybegan to look more convincing. News from China about the suspension of mining in three more provinces, after the shutdown of 90% of the equipment in the country, is of a technical nature and should no longer be scary. In the same vein, the opinions of certain prominent speakers and the postponement of the SEC's consideration of an application for launching a bitcoin ETF of one of the applicants.

From the general background it is worth highlighting the approval of suchexchange-traded fund, but based on Ethereum, in Brazil. The management company QR Asset Management does not have many funds under management – only $115 million, but we need to take into account the huge potential of Latin America. This could not have any impact on the dynamics of the second largest cryptocurrency by capitalization at the current stage; the recovery above $2000 by the end of the day was a consequence of the “detente” from Powell.

Taking into account a decrease of 23% over the previous eightdays ETH now looks preferable as a bet on market recovery. Especially considering the fundamental baggage that has accumulated recently – PR of staking in the second version of the platform, London hard fork. Even the mention of Buterin’s filming in the documentary can be interpreted as not a reason to understand what Ethereum is (for those who are not familiar with it).

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