Retaining Significant Supports, Bitcoin Retests Critical Levels

Bitcoin started to surge toward $ 60,000 the last day after Fed Chairman Jerome Powell announced that Fed expects to keep interest rates near zero at least through 2023, despite concerns in financial markets about potentially higher inflation.

At a news conference after the Fed’s latest policy meeting, Chair Jerome Powell also stressed that the Fed is essential and will continue to provide financial support to help the US economy recover. As it is already known, experts think that these stimulus packages published by the FED increase inflation, and thus investors are turning to Bitcoin.

Managed to rise to $ 59k the other day after the latest news, Bitcoin later started a downside correction from the $ 60,000 resistance against the US dollar. The leading cryptocurrency price tested the critical $ 60,000 resistance zone before correcting lower. Briefly tumbling below $ 60,000, Bitcoin settled near $ 58,500. As of March 19, 2021, the BTC price has risen 0.29% in the last 24 hours. Bitcoin is still up 3.01% on the week and more than 18.94% in the past month.

According to analysts, Bitcoin (BTC) buyers defended short-term support around $ 57,000 and $ 56,000 but will face heavy resistance around $ 58,500, $ 60,000 and $ 61,500.

Ethereum Holds Short-term Support at $1,800

While Bitcoin price consolidated above the $ 57,200 and $ 57,000 support levels, Ethereum saw similar patterns and maintain the $1,800 level. On the downside, the first key support is near USD 1,750. The main support is near $ 1,710, below which the bears might take control.

CBDCs ‘Need to Coexist With Cash’

Yesterday, Jerome Powell made important statements about the central bank digital currencies (CBDC) at a virtual payments conference hosted by the Basel Committee on Banking Supervision. He said central bank digital currencies (CBDCs) will need to coexist with cash. Stating that digital currencies and fiat currencies should coexist, Powell talked about a committee working on this issue. These statements of Powell are crucial in terms of the stage reached in the acceptance of CBDCs.