Bitcoin price increased slightly, the cryptocurrency market showed signs of recovery
In the past few weeks, the price of Bitcoin (BTC) has often experienced strong fluctuations in the early Monday morning. In the last 3 weeks, Bitcoin price continuously dropped sharply every Monday morning and made new lows on the daily frame. However, this rule was broken when this week, the Bitcoin price showed signs of recovery.
VietNamNet’s record shows that, this morning (December 5), opening the daily candle at $17,100, Bitcoin price broke the resistance of $17,200 before stopping at $17,350. Although there was only a slight price correction, this is still considered a positive sign for the cryptocurrency market.
In a broader perspective, Bitcoin – the world’s number one cryptocurrency has maintained a steady growth momentum over the past week. Since last Monday morning, Bitcoin has surged from the $16,000 mark to $17,350, its highest price since Nov.
This is a rare rally for Bitcoin since the beginning of November, around the time of the collapse of FTX – the world’s second largest cryptocurrency exchange. This shows that it seems that the Bitcoin price is showing signs of recovery. Bitcoin is likely to retest the two prices of $17,900 and $18,500.
The “revival” of Bitcoin led to the upward momentum of the entire cryptocurrency market. Most of the major cryptocurrencies such as Ethereum (ETH), Binance Coin (BNB), Polkadot (DOT), Ripple (XRP) remained in the green this morning.
Counting the past week, overall cryptocurrency market mainly traded in the upward direction with a growth rate of 5-10% depending on each ticker.
Previously, the Chairman of the US Federal Reserve (FED) – Mr. Jerome Powell implicitly confirmed that in the December 2022 interest rate adjustment period, the Fed will reduce the interest rate increase to 0.5%, lower than the figure. 0.75% of previous increases this year. This is arguably the main growth driver of the cryptocurrency market.
The reason for this change is that the FED finds that the current interest rate is appropriate to control inflation in the US. However, the fight against inflation is not over and the Fed continues to raise interest rates.
From the beginning of 2022 until now, the Fed has had a total of 6 interest rate hikes, bringing the most important parameter for the US economy to increase from 0.25% to 4%. This is the highest interest rate the Fed has imposed since the 2008 economic crisis.
