17.01.202318:26 Forex Analysis & Reviews: Bitcoin's price did not have enough time to increase as it started to forecast growth in six-digit numbers.

On Thursday before last, when the report on American inflation was revealed, bitcoin started a new wave of growth abruptly and quickly, as can be seen on the 4-hour TF. As a result, we continue to correlate this occurrence with the strengthening of Bitcoin and do not think it will last for very long. It should be kept in mind that one report on inflation cannot possibly counteract all the unfavorable information that traders have had access to over the past year and that may still affect the bitcoin market. We also call your attention to the fact that the current price of the cryptocurrency has increased by a meager $6,000 from its lowest point last year. Naturally, every trend begins modestly, but it is still too early to discuss a "bullish" trend.

For a new "bullish" trend to begin, a particular fundamental background is required. For example, it would be a clear call to action for cryptocurrency investors if the world's largest central banks declared that the worst of the inflation has passed and that rates will now begin to fall. We are aware that such a connection rarely exists in its purest form. Typically, the market starts to anticipate or permit a certain course of events, and then it makes trading decisions based on these assumptions. But let us remind you that inflation is a highly unstable indicator that is accelerated by a variety of variables. Numerous Central Bank officials claimed that the military crisis in Ukraine was what caused the high inflation in 2023. This conflict has not yet been resolved and may get worse. We also remember that there was a negative effect of inflation and an increase in energy prices. Oil and gas prices have now significantly decreased, but this does not indicate that they will not rise again. Since the European Union has virtually severed all trade links with Russia, other nations will now provide gas and oil. In the medium term, we think both of the main fuels can increase. These facts lead us to believe that inflation may stop slowing down and that extra steps will be required to stop it.

The CEO of SkyBridge Capital, Anthony Scaramucci, did not have time to wait for bitcoin to increase by $5,000, though; he quickly forecast that it would reach $50,000 in 2023 and $100,000 in 2025. He referred to the $40,000 payment as "the reasonable worth of bitcoin" last summer.

The "bitcoin" quotes on the 4-hour time frame have surpassed the $18,500 mark, allowing the first cryptocurrency's rise to continue with the target of $24,350. While long positions can still be held open for the time being, we believe that a fix below the level of $20,400 will suggest that they should be closed in favor of short positions with targets of $18,500 and $17,582. For Bitcoin to continue rising, the underlying background should ideally improve steadily as it enters a new "bullish" trend.