Supporters keep Bitcoin above the $22,000 support level, and this is where Bitcoin is expected to go next

In anticipation of Federal Reserve Chair Jerome Powell’s statement before Congress, investors chose to place safer bets, and Bitcoin’s downward trend continued. It was weak near the $22,500 mark.

It is important to note that investors are paying close attention to Powell’s comments because any sign of a more hawkish attitude on interest rates could increase market volatility, especially in the space of cryptocurrencies.

The sustained losses in the cryptocurrency market, however, started following the publication of a number of encouraging US economic indicators, showing that the economy is strengthening and that the nation no longer needs government assistance in the form of low interest rates.

As a result, traders and buyers became concerned about inflation and the potential for interest rate increases.

Worries about rising inflation and a bearish crypto market

The value of the worldwide cryptocurrency market has been declining this week; as of early Tuesday, it had fallen from $1.11 trillion last week to $1.03 trillion. Bitcoin (BTC), the first and most well-known cryptocurrency, has been unable to arrest its decline and has fallen considerably below the $23,000 mark.

Future Data and the US Currency

The bullish US dollar has also been putting weight on the cryptocurrency market. The US dollar has been generally strengthening, with gains seen on Tuesday ahead of Federal Reserve Chair Jerome Powell’s forthcoming testimony before Lawmakers.

It is crucial to note that market participants will be carefully monitoring Powell for any meaningful cues that he might change his mind about only a few more rate hikes this year and that he is concerned about the recent uptick in US economic activity and inflation.

Bitcoin Price

The 24-hour selling volume is $16 billion, and the price of one bitcoin is currently $22,400. In the last day, Bitcoin has decreased by 0.25%. With a $432 billion live market cap, Bitcoin is currently the market winner.

According to technical analysis, the BTC/USD pair is currently consolidating, with trading taking place in a constrained band between $22,000 and $22,500. If this range is broken, whether to the upside or downside, there could be a major price change in the Bitcoin market.

A bullish breakout that pushes the price of bitcoin towards the $22,800 or $23,250 levels may occur if the BTC/USD pair surpasses the $22,500 level. On the other hand, a recovery might occur if the support levels at $22,000 or $21,750 are maintained.