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Today, let’s dive into the latest news regarding China’s potential move into Bitcoin after ending its gold-buying spree. James Hyerczyk, a senior FX Empire editorial team member, recently discussed the possible demand for BTC from China. With the People’s Bank of China (PBoC) putting an end to its gold-buying spree, many are speculating that Bitcoin could be the next asset on their shopping list.
As the US CPI Report came in hotter than expected and the FOMC projected a hawkish outlook on the economy, this could present an entry opportunity for the PBoC into the Bitcoin market. If reports of China purchasing Bitcoin surface, we could see BTC soar to new all-time highs.
However, it’s important to note that increased demand for Bitcoin in China may draw the attention of the Biden Administration and Senator Elizabeth Warren, potentially leading to regulatory scrutiny.
Technical Analysis: Bitcoin
Looking at the technical analysis of Bitcoin, we see that BTC is currently hovering above the 50-day and 200-day EMAs, signaling bullish price movements. If Bitcoin breaks above the $69,000 resistance level, we could see a push towards the Friday high of $71,992, with a potential retest of the all-time high at $73,808.
It’s essential to consider factors such as the US CPI Report, the Fed’s stance, and the flow of market data for Bitcoin spot ETFs when analyzing the potential price movements of BTC. On the flip side, a break below the 50-day EMA could indicate a drop towards the $64,000 support level.
Currently, with a 46.64 14-Daily RSI reading, Bitcoin could potentially see a drop to the $64,000 support level before entering oversold territory. Traders and investors should keep a close eye on these key levels to make informed decisions in the volatile cryptocurrency market.
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