What a change in situation ! While Bitcoin had taken the announcements of the last Fed meeting well, it finally faltered as soon as Wall Street opened. Indeed, it would seem that the peak of inflation in the United States is far from having reached its peak. And this, following the latest worrying economic statistics.
This analysis is offered to you in collaboration with Le Trading du Coin and its algorithmic trading solution.
By correlation effect, the fact that the S&P 500 and the Nasdaq returned their gains from yesterday’s session obviously penalized the BTC. So now the support of $38,000, on which it relied in recent days, was sharply broken. And in this still gloomy context on the financial markets, the latest technical analyzes show that the mother of cryptocurrencies is once again approaching its low points for the year.
Bitcoin – A fifth consecutive week of decline?
Unless there is a last-minute change, Bitcoin looks set to close out a fifth consecutive week of declines. With the key to new unfavorable technical signals. Because following the break of the $38,000 support, and given the current uncertainties, it would no longer be surprising to see it touch the bottom of its range or horizontal channel (orange rectangle).
While a bearish non-crossing of the MACD was envisaged during the previous analysis, the unexpected post-Fed backlash could ultimately lead to the opposite. Especially since the slope of the 30-week moving average (weekly 30MM) takes on a bearish accent. And overall, this all contributes to a BTC price trend back to the razor’s edge.
To avoid a market scenario feared by cryptocurrency investors, it would be better not for BTC to threaten the bottom of its range. That is to say the support of $34,000-35,000, in addition to a deterioration of the technical indicators. Why ? Because the descending line initiated since its last ATH would assert itself with lower and lower high and low points.
Bitcoin – On the way to $30,000?
With Bitcoin prices significantly below the 200-day moving average (200-ma daily) and failures below its resistances and supports, we are closer to seeing them sink again. Because not only they struggled to detach themselves from the correlation with equity indices. But in addition, it is clear that investors do not consider it as a hedge against inflation, at least for the moment.
As a result, sellers have convincing elements to put pressure on buyers. With BTC prices heading back towards the $34,000 support. Not considering technical indicators in daily units turn into the red. And for good reason, they are under their respective waterlines.
To the extent that unfavorable technical signals do not experience excess oversold, the tidy Bitcoin could be seriously threatened in the event of a breakout of $34,000-35,000. With the prospect of revisiting the low points of last summer, located around $30,000. A scenario that would cast doubt on this asset class having fully benefited from the Covid-19 crisis. With the possibility of the installation of a bear market (bearrun)supported by the shoulder-head-shoulder chartist figure.
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