The cryptocurrency market is developing a downward correction after an impressive increase last week, when bitcoin broke through the 31000.00 mark, updating the maximum since June 2022 at 31443.00.
The BTC/USDT pair found support near the 25000.00 mark and in the zone of key levels 25300.00 (EMA200 on the daily chart), 25700.00 (EMA144 on the daily chart).
The sharp strengthening of bitcoin and major altcoins also developed against the backdrop of positive news from the world of the crypto industry.
In particular, it became known that one of the largest US asset management companies BlackRock Inc. filed an application with the US Securities and Exchange Commission (SEC) to create a spot investment exchange-traded fund for BTC (iShares Bitcoin Trust).
If successful, large investors will have another reliable tool for investing in cryptocurrencies. The Spot Bitcoin ETF, if approved, will bring new investment into BTC.
In addition, last week, digital currencies received unexpected support from the head of the Fed, Powell, who said that the Fed is considering stablecoins as a means of payment and
announced the need to connect the American Central Bank to the regulation of the stablecoin market, which he called "a form of money" and not securities.
Crypto market participants expect that bitcoin can become a locomotive for the growing interest of investors in cryptocurrencies and continue to grow, first towards the local maximum of 2022 48184.00, and then - of 2021 and the mark of 69138.00.
Of the negative factors for cryptocurrencies, the monetary policy of the Fed may become, if the cycle of its tightening continues.
From a technical point of view, the breakdown of the range formed between the levels of 30800.00 and 29820.00 may be the fastest signal to resume positions in one direction or another. With the development of downward dynamics, a breakdown of the support level of 29395.00 (EMA200 on the 1-hour chart) will become an additional signal in favor of short positions.
In an alternative scenario, after breaking through the resistance levels of 30800.00 and 31000.00 and updating the high of the last week at 31443.00, the BTC/USD pair will head, as we have already noted above, towards the local maximum of 48184.00, and then - to the mark of 69138.00.
Support levels: 30000.00, 29820.00, 29395.00, 29000.00, 28000.00, 27640.00, 27000.00, 26250.00, 26000.00, 25640.00, 24760.00
Resistance levels: 30800.00, 31000.00, 31443.00, 35000.00, 46000.00, 47000.00, 48000.00
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