Another week has flown by, and there is silence on the cryptocurrency market. Bitcoin has maintained a sideways movement since the beginning of the year. Investor activity remains low.
In the first half of the week, the BTC/USD pair rose to $42,594. Demand for bitcoin grew after Janet Yellen's statement, which appeared and was later removed from the website of the Ministry of the Treasury, that the States were not going to establish tight control over the field of cryptocurrencies.
The growth of quotations was restrained by the level of $42,594 (data from the Binance exchange). On March 10, buyers lost all their profits against the backdrop of a general strengthening of the US dollar, as well as a decrease in US stock indices. Major currencies and bitcoin came under pressure after the press conference of the head of the ECB C. Lagarde and the publication of the US inflation report for February.
Stock indices fell on expectations of a rate hike by the US Federal Reserve to stem inflation. In February, the US consumer price index (CPI) updated its 40-year high, coinciding with the forecast of 7.9% year on year. Additional pressure came from President Biden's call to suspend trade relations with Russia as part of the sanctions.
Everything goes to the fact that the bitcoin side trend will continue until March 16, until the US Federal Reserve meets. Support for the new week from March 14 to 20 will be two levels: $37,000 and $35,400. The trading range until the end of March is 34.7% from 35400 to 47700. Sellers now dominate. For buyers to turn the tide, they need to quickly break through the 45500-46000 zone.
There is another factor that negatively affects the US stock market. High energy prices drive up inflation and increase the risk of a recession in the United States. And since bitcoin has a close relationship with indices, it also risks falling below 30 thousand. Uncertainty in the market remains. We are waiting for a new block of news that will help determine the direction of the BTC/USD pair for the next month.
