Bitcoin Price Prediction As BTC Approaches Key Support Level – Where Is the Next BTC Target?

cryptonews.com:

Bitcoin has been experiencing a volatile period, with the cryptocurrency dropping by nearly 4% over the past week. As of the time of writing, BTC is approaching a key support level, with analysts closely monitoring the market to determine where the next target for the digital asset will be. 

In this context, it is essential to explore the factors that could impact the price of BTC in the short and long term.

In January, inflation rose 5.4% compared to the previous year, according to the Personal Consumption Expenditures (PCE) report released by the Bureau of Economic Analysis (BEA) on February 24.

Core inflation, which the Federal Reserve prefers to use for measuring inflation, increased by 4.7% since January 2022. The US Dollar Index (DXY) reached 105.26, its highest level since January 6, reflecting the impact of rising inflation.

The Federal Reserve has set 2% overall inflation as its target, and it is anticipated that more interest rate increases will occur to address inflation. As a result of the potential rate hikes, the majority of the market anticipates the Federal Reserve to continue increasing interest rates. 

When the PCE data revealed a 5.4% increase in inflation in January, BTC/USD decreased, indicating Bitcoin's sensitivity to rising interest rates.

During the G20 conference in Bengaluru on February 25, IMF Managing Director Kristalina Georgieva suggested that banning private cryptocurrencies could be an option. The IMF has also proposed new guidelines for its member countries on regulating cryptocurrencies, outlined in a February 23 report. 

The agency's nine-point action plan emphasizes the need to avoid recognizing cryptocurrency assets as official money or legal tender, while implementing tighter regulations