If at yesterday’s noon the price of Bitcoin reached $43,000, then by the evening, it was already struggling to stay above $40,000. The BTC price began to actively decline after the head of the Fed said that the rate hike should happen more quickly. Moreover, he indicated that the rate should be raised by 0.5%. And James Bullard said that he is considering a rate of 3.5% by the end of the year.
Raising the interest rate is the primary tool in the fight against inflation, which was 8.5% last month. And the Fed will actively use this tool. The statements of the Fed members had a tangible impact on Bitcoin and the cryptocurrency market in general. The entire market turned red.
From a technical point of view, the BTC/USD pair has once again proved that the 43,000 level is a strong resistance. The bulls do not have enough strength to overcome it. The BTC/USD pair also showed the importance of the 40,000 level. This level determines whether Bitcoin will continue its bearish phase.
At the time of publication, the BTC/USD pair is trading around 40,400. At the same time, on the daily chart, the BTC/USD pair continues to be in an upward price channel, coming close to its lower border. A breakdown of this border will intensify the selloff and send the BTC/USD pair to the 39,250 area. A move below this level will send the BTC/USD pair below 38,000.
On the other hand, if the BTC/USD pair stays above 40,000, we will see another attempt to rise to the upper limit of the rising price channel. The pair will face immediate resistance around 40,750. Next, the BTC/USD pair will face the resist around 41,250. The 100-day moving average provides additional resistance.
Some analysts tend to assume that the price of Bitcoin will range from 38,000 to 47,000 in the coming months.