BTC/USD- Bitcoin’s Price Movement Influenced by Regulatory and Macroeconomic Factors

Short Position

Take-Profit: 21,463
Stop-Loss: 23,500.
Timeline: 1-2 days.

Long Position

Buy-Stop: 23,000
Take-Profit: 24,000
Stop-Loss: 22,000

Bitcoin’s price movement is being influenced by regulatory and macroeconomic factors. US regulatory agencies have been exerting their authority since the collapse of some renowned exchanges in 2022. New York regulators also asked Paxos, which mints the third-biggest stablecoin in the world, to stop its mining activities, leading to a legal battle. The SEC has also implemented new rules that require investment advisors to secure digital assets with qualified custodians.
Despite positive economic data from the US, with a drop in unemployment rate and steady inflation in January, the Fed is likely to maintain a hawkish tone in the coming months. This is because Bitcoin and other risky assets tend to underperform in periods of high-interest rates.
Bitcoin formed a strong bottom at $21,463 and rose above the 50-period moving average to the key resistance point at 22,774, which was also the neckline of a head and shoulders pattern. The Relative Strength Index has moved to the overbought level, and volume has slightly increased in recent days. There is a possibility that Bitcoin will retest the important support at 21,463 as American macro data remains strong.

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