How will Bitcoin react to the FED interest hike on June 15! BTC Price Braces for a Hard Selloff – Coinpedia – Fintech & Cryptocurreny News Media

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The price of Bitcoin has returned to its preferred psychological level, which it has been trading for a month. While technical analysis only provides half the picture of why disaster is inevitable, examining the current state of financial markets reveals the other half.

The interest rate in the United States has reached a 40-year high, according to Econometrics, and the Federal Reserve is expected to respond by lowering interest rates.

Risky assets, such as the stock market, were reduced in price with each of these events. These risky investments only started to rebound after the recession was over. Gold, on the other hand, which is used as a store of value, saw a much smaller decline and a much faster recovery.

Bitcoin has been heavily pegged to the stock market recently, with no signs of separating any time soon. This strong bond seems to have started after the COVID crash and continues to this day.

If this trend continues, there is a good chance that BTC will follow in the footsteps of risky assets and the stock market in previous recessions.

BTC price will fall below $20,000

Bitcoin price forms a bear flag within an existing bear flag. The larger technical structure, as shown in the last article, initiated a bearish breakout on May 6th and has been collapsing ever since.

This action resulted in a 36% drop in one week. Looking at the big picture, the model’s flagpole was generated by Bitcoin’s all-time high falling from $69,000 to $32,837 between November 10, 2021 and January 24, 2022.

The flag represents the consolidation that occurred after the sell-off and can be seen as lows and highs between January 14th and May 22nd. A flag is a channel-like parallel structure that rises.

The flags are continuation patterns, and the forecast for this one is for the price to decline towards a target of around $20,000 in the near future. This is calculated by multiplying the mast height by the breakout point of $38,305, which was breached on May 6.

During consolidation, the downtrend of the larger bear flag created a smaller one. This technical setup, on the other hand, predicts a 30% decline to $20,000, demonstrating confluence and strengthening the larger pattern.

While Bitcoin price is currently negative, a daily or weekly candlestick above $52,000 will disprove the bearish thesis by generating a higher high from a macro perspective. In this scenario, the price of Bitcoin could rise further and retest the psychological level of $60,000.

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