Bitcoin Price Prediction: BTC Drops 3% Amid Binance Lawsuit and Potential Rate Hike Concerns -TGN

Bitcoin, the world’s leading cryptocurrency, is facing a 3% dip as it trades at $29,171 on Tuesday. The inability to sustain higher price levels may have influenced aggressive bearish sentiments, leading to short positions, while short-term bulls have opted to lock in gains.

Amid the market swings, two major factors weighing on BTC’s performance are the ongoing Binance lawsuit and concerns over a possible rate hike.

As these uncertainties loom, investors are closely monitoring market dynamics to make informed decisions.

Binance lawsuit and possible rate hike weigh on BTC

The price drop of BTC is not declared definitive, but coincides with a Wall Street Journal report that has led to investor concerns about Binance.

The report highlighted statements made by Binance CEO Changpeng “CZ” Zhao in 2019 that raised questions about possible “wash trading” activities by Binance affiliates during the launch of its US trading arm, leading to inflated trade volume suspicions.

As the world’s largest cryptocurrency exchange, Binance is already facing legal challenges, being sued by the Securities and Exchange Commission (SEC) last month.

It is currently under investigation by the Department of Justice, which may lead to a consent decision or settlement.

The investigation focuses on potential anti-money laundering and sanctions evasion violations, with potential implications for Binance’s future business.

In addition, investors are closely watching the outcome of the Federal Reserve’s two-day meeting for hints of possible rate hikes.

Historical price gains have contributed to bitcoin’s price decline, and market participants are cautious about the Fed’s future decisions given ongoing recession concerns.

As the Federal Reserve meeting concludes, the price of bitcoin is expected to continue to experience fluctuations within a narrow range.

The market has already factored in expectations of a 25 basis point rate hike by the Fed this week and is closely monitoring signals about future rate action.

Until there is more data and confidence in inflation trends, the FOMC’s rate decisions will likely remain uncertain, potentially impacting Bitcoin’s ability to break out of the $31,500 level in the near term.

Investors will closely analyze the Fed’s statements for potential implications for the cryptocurrency market.

Bitcoin halving occurs in less than 40,000 blocks

On Monday, the Bitcoin network reached a crucial milestone by reaching block 800,000marking a major turning point in the evolution of the world’s largest cryptocurrency.

According to Bitcoinblockhalf.com, this achievement also means that the next Bitcoin halving, which will occur at block 840,000 and cut miner earnings in half, is now less than nine months away (or about 40,000 blocks).

Historical data suggests that Bitcoin halvings have played a role in driving price increases; it is crucial to consider that the cryptocurrency market is very complex and subject to multiple influencing factors.

Therefore, the precise impact of the halving on the BTC price remains uncertain and may be influenced by various dynamic elements in the market.

Bitcoin price prediction

Bitcoin, the leading cryptocurrency, experienced a sharp decline, approaching the $28,850 level.

However, a recent doji candle close just above this critical level indicates a possible weakening of the bearish bias.

In addition, the presence of both a doji candle and an interpreter candle around the $28,800 level supports the possibility of a bullish trend or bullish correction.

In addition, the relative strength index (RSI) and moving average convergence divergence (MACD) indicators are holding in the oversold zone, adding to the potential for a bullish reversal.

Therefore, it is essential to keep a close eye on the USD 28,850 level, as a break above it could lead Bitcoin to target an immediate resistance level at USD 29,500.

This level of resistance corresponds to the 50-day exponential moving average and was previously a significant support and double bottom, dated July 24.

As such, it will likely act as a formidable resistor. If Bitcoin successfully crosses the $29,500 level, the next target could be around $29,900 or $30,300.

Traders and investors should remain vigilant for further price movements to gauge the potential for a bullish breakout or further bearish pressure on Bitcoin’s price.

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