Bitcoin Falls Hard
It’s been a cruel year for crypto traders. The leading crypto coin, Bitcoin, is now down over 60% on the year, having plunged by more than 40% since late March. A ferocious rally in the US Dollar, and a broader rout in risk assets and tech stocks in particular, is weighing heavily on the iconic digital asset.
With the Fed having turned aggressively hawkish in the last six weeks, traders are anticipating a further series of .5% rate hikes. Yesterday’s US CPI data, while weaker than March, was still above estimates, showing little to deter the Fed from its planned course. With recessionary fears taking hold amidst higher money market rates and higher inflation and supply chain issues, risk assets are increasingly under pressure, suggesting further downside for cryptos near-term.
Technical Views
Price has now broken below the key $30,000 mark, a major support level which the market has not been beneath since late 2020. The market is now testing support at the low of the large falling wedge pattern which has framed the decline from last year’s highs. We also have a 28th December 2020 gap close at the 24930. If price can hold here and get back above 30175, there is room for a further rotation higher back towards 37030 and the falling wedge top. However, should price slip below 24930, 20575 is the next support to note.
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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.