The Fed has begun to take some quick action to control inflation. As a result, investors began to leave risky assets and this immediately affected the cryptocurrency market. Investors began to transfer their capital to treasury bonds, which became more attractive to investors. Ten-year Treasury yields are rising. And the dollar index reached 95.7 points – this is the maximum value since January 10. The FOMC meeting next week could be critical to determining market momentum.
Yesterday’s attempt by the price of Bitcoin to gain a foothold above $43000 turned into a price decline below the psychological mark. At the time of publication, Bitcoin is trading at 37800. Analysts predict that the correction will continue in the coming days. The exit of investors from digital currencies will also be observed against the backdrop of increased control over the cryptosphere in many countries.
It is rather difficult to make a short-term forecast now. However, for hodlers and long-term players, this might be a good time to buy coins.
The bulls managed to briefly stop the fall in the price of Bitcoin around 38400, and even return the price above 39000. But the price of Bitcoin did not stay above this mark for long and soon resumed its fall again. Currently, the BTC/USD pair is trading around 38200. This is below the low of September last year. The bulls will try to stop the decline around 38000. This is the price level of Bitcoin in August last year. However, if the pair falls below this level, it will lead to a deep correction.
The daily BTC/USD chart shows that the pair has been trading in a downward price channel since last November. And the current price level is located just above the center line of the channel. Here, the BTC/USD pair can also count on support. The boundaries of this channel are located in the areas of 43300 and 31500. Therefore, we can assume that the level of 31500 will be a strong support level for the pair if the fall continues.