Bitcoin recently broke above the $23,500 resistance level and is now headed for new highs. As the price of Bitcoin continues to rise, many investors are wondering where it will go next. In this article, we’ll explore some of the factors that could affect its price in the near future and make predictions about where it might be headed.
Bitcoin started trading at $23,746 and has seen some fluctuations over the past 24 hours. It is currently down about 0.92% and is trading at $23,238.
The highest value reached by BTC/USD was $23,784 during the same period, while the lowest value was recorded at $23,110. However, it still showed an overall gain of more than 2% over the past week.
Bitcoin Trouble Hits Record Level: What Does It Mean For Crypto Investors?
On January 29, the difficulty of Bitcoin mining increased to an unprecedented level. The 4.68% increase in complexity occurred at block height 774,144, and the total complexity rose from 37.59 trillion to 39.35 trillion, a new all-time high.
Recently, the difficulty associated with Bitcoin mining has increased significantly by 48 percent. This can be explained by the complexity measurement of 26.64 trillion recorded on January 21 last year.
Blockchain becomes more secure by increasing its level of complexity, as it is much more difficult for attackers to succeed in their attempts. Also, as the mining difficulty increases relative to the global hashrate, new blocks become more difficult to mine.
The difficulty of Bitcoin mining increases as the security of its network becomes stronger, even as miners need to put in more effort. Also, whenever the number of miners increases, it ultimately results in an increased network size with improved long-term value for BTC/USD.
Core Scientific submits a $6 million Bitmain coupon sale request
On Jan. 25, Core Scientific, a bankrupt bitcoin mining corporation, filed an emergency appeal against the sale of $6.6 million worth of Bitmain coupons, according to filings.
Core Scientific went to court to get permission to sell Bitmain vouchers that no longer apply to their business. To do this, they filed an application with the bankruptcy court of the Southern District of Texas in the Houston branch.
Core Scientific has $6 million worth of Bitmain coupons, but they are facing some challenges. It is not possible to convert these product-specific coupons to cash with Bitmain. Their coupons can only be used to buy S19 miners from Bitmain. Unfortunately, current circumstances do not make these coupons useful due to the various conditions listed.
Bitmain’s coupons expired between March and April 2023, when the company expects to complete its Chapter 11 bankruptcy reorganization. The firm also said it will no longer buy S19 miners during or after Chapter 11 closes.
On December 21, 2022, Core Scientific, a leading US cryptocurrency mining company, was forced to file for bankruptcy due to the high electricity costs they were incurring, declining profit margins, and a declining BTC/USD exchange rate.
Be prepared for rising interest rates
A Daniel Ringo working paper recently referenced by Fortune magazine on Twitter suggests that the Federal Reserve’s aggressive interest rate hikes in its efforts to curb inflation may be contributing to the widening inequality gap.
Investors are closely watching Jerome Powell’s press conference after the policy meeting to get an idea of how interest rates may move in the future and when the Federal Reserve will pause rate hikes.
At the Federal Reserve meeting on February 1, investors expect a 0.25% increase in the federal funds rate to 4.5%-4.75%, leading to a second consecutive gradual increase.
About 185,000 jobs were added in January, down from the 223,000 reported in December, according to a Labor Department report due on Feb. 3.
Positive economic developments are expected to have a positive impact on BTC/USD prices.
Bitcoin price
The price of Bitcoin is currently $23,258 and has fallen by 1% in the last 24 hours. It has an estimated market cap of $26 billion and a market capitalization of an impressive $488 billion, ranking it #1 on CoinMarketCap.
On the 4-hour timeframe, BTC/USD price is trying to break above the $24,000 resistance level and fell to retest the $23,000 support level.
A break below this level could send Bitcoin price down to $22,600 or $22,350. The $23,000 support zone is based on the 50-day moving average of the 4-hour timeframe, and a candle close above this level could lead to a bullish reversal in BTC/USD price.
Consider looking for buy positions above $23,000 with a price target of $23,550 or $24,000. Also, short positions can be taken if the $23,000 support area is breached.
