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BTCUSD Growth May not last Long

1/9/2023 1:57 PM

The BTC/USD pair has been growing since the beginning of this month, exceeding 17200.00 today.

Experts attribute the positive dynamics of the asset to the market reaction to the publication of December data from the US labor market, which reflected signs of a decrease in inflation pressure on the national economy: the growth of average hourly wages slowed down from 0.4% to 0.3% MoM, and from 4.8% to 4.6% YoY, reinforcing investors' hopes for a slowdown in the tightening of the monetary policy of the US Federal Reserve. Traders' enthusiasm may turn out to be short-lived, as the overall national labor market still looks strong: employment rose by 223.0K, exceeding forecasts, while unemployment fell to 3.5%, confirming the threat of further inflationary growth has not been eliminated. Regulator officials note that it is too early to reverse course on the abolition of economic incentives, and interest rates need to be kept at high levels for a long time, and in the long term, the pressure of monetary factors on the digital asset market will continue.

Also, the sector will be negatively affected by the consequences of the bankruptcy of the FTX exchange, which has already led to problems for several large cryptocurrency companies. Since the beginning of January, information has been actively spreading about the financial problems of the Huobi site, which is forced to cut staff and pay wages. Its representatives assure that nothing threatens clients' funds, however, investors suspicions are growing, and if they are confirmed, the cryptocurrency market may again be under significant pressure.

The trading instrument continues to grow towards 17830.00 (Fibonacci correction 23.6%) and 18350.00 (the area of December highs). The key "bearish" level is the middle line of Bollinger bands around 16750.00, the breakdown of which will let the price return to 16250.00 (Murrey level [5/8]) and 15700.00 (the area of November lows).

Technical indicators do not give a single signal: Bollinger bands are reversing upwards, Stochastic is approaching the overbought zone, which indicates the possibility of a downward reversal, and MACD is near the zero line, maintaining insignificant volumes.

Resistance levels: 17830.00, 18350.00. | Support levels: 16750.00, 16250.00, 15700.00.

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