-1690363114.png)
BTC Correction Underway
The softening in BTC over recent weeks will no doubt be frustrating for crypto bulls, on the back of what seemed like an imminent breakout earlier in the month. However, the move can still be viewed as a correction for now, despite the deep fall we saw on Monday. Looking ahead today, the FOMC will be pivotal for the path of BTC near-term.
Fed Expectations & Market Implications
On the one hand, with a .25% hike baked in, the Fed will likely need to strike a more hawkish tone than the market is expecting in order to drive fresh USD buying here. Given that inflation is falling steadily and with lingering recessionary concerns still on the horizon, the Fed seems unlikely to be too aggressive in its language.
If the Fed is seen leaning more towards signalling a further pause after today’s hike, this would be enough of a catalyst to drive BTC higher near-term, with USD coming under heavy selling pressure. However, if the Fed is seen pointing to the likelihood of further rate hikes near-term, retaining caution around its CPI outlook, then this should see USD remain underpinned, weighing on BTC near-term.
Technical Views
BTC
The reversal lower from the 32185 level has seen BTC falling back below 3000 for now. This is a key psychological level and, while below here, risks are tilted towards a further move lower and a test of the 27415 level next, in line with bearish momentum studies readings. Should bulls find their feet today, 32185 remains the key near-term hurdle to overcome.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.