The price of Bitcoin has temporarily stopped below $30K, and its future direction is uncertain. Here's a look at where it could be headed next.

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The cryptocurrency found decent support earlier in the session when it briefly fell to test the $29,000 level and 21-Day Moving Average just above it.

But the Bitcoin bulls seem to be taking a breather ahead of the psychologically important $30,000 level, as key macro events including a rate decision from the US Federal Reserve next week loom.

US economic data released on Friday in the form of broadly as-expected, but still fairly hot Core PCE inflation and Q1 Employment Cost Index numbers were viewed by the market as supporting the case for an already widely expected 25 bps rate hike from the Fed next week.

That would take US interest rates to 5.0-5.25% and markets are even moving to price in a near-30% chance of another interest rate hike from the Fed at its next meeting in June.

But as bank crisis concerns remain front and center as First Republic is taken into FDIC receivership, most analysts are expecting a pause to the rate hiking cycle in subsequent meetings.

The Fed’s interest rate hiking cycle has put the banking sector under enormous pressure by 1) hitting the value of bank bond portfolios and 2) encouraging withdrawals to higher-yielding money market funds.

So long as a Fed pause remains the base case assumption, macro shouldn’t be too much of a headwind for Bitcoin and the broader cryptocurrency market.

And if next week’s US jobs and ISM PMI survey data come in week and boost US recession bets, that could bolster Fed rate cut bets (even if the Fed continues to push back against the idea of a near-term rate cutting cycle at next week’s meeting).

That could be a tailwind for Bitcoin and help it push back to the north of $30,000, assuming the US dollar’s recent downtrend continues and US yields come under pressure.

This is a possible direction for Bitcoin to take in the near future.

According to the chart analysis, the Bitcoin bull market of 2023 is robust and healthy.

The long-term bullish developments, such as the golden cross in February, and the strong rebound from the 200DMA and Realized Price in March, are encouraging dip buying behavior.

Additionally, the recent rebound from the 50DMA, and Bitcoin's positive response to its 21DMA on Friday, indicate that the near-term momentum is also favorable. The cryptocurrency is up over 8.5% from the monthly lows set under $27,000 earlier this week.

Currently, the BTC price is situated in the higher section of a range between $26,500/$27,000 and $31,000ish, which has been active since mid-March.

Assuming favorable macro developments, it appears that a surge towards resistance levels around the $32,500-$33,000 range and even to reach new yearly highs could be imminent.

Aside from relying solely on technical analysis, the Bitcoin bulls have additional grounds to maintain their confidence in the cryptocurrency's market cycle by considering on-chain indicators and longer-term analysis.

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