Bitcoin On The Ropes The collapse in Bitcoin has seen the market trading down to it slowest level since December 2020 this week. Firmly hawkish Fed expectations and a resurgent US Dollar have seen risk assets crumbling recently. Bitcoin is now trading down around 70% from the all-time-highs printed last year and has fallen by over 50% this year alone. With cryptos under massive pressure amidst the rout in tech stocks and the exodus from crypto being seen among the retail market, the near-term outlook is highly precarious. The upcoming FOMC meeting this week will be make or break for Bitcoin. If the Fed hikes by more than expected or is more hawkish in its forward guidance than expected, USD will see fresh highs once again and risk assets, including cryptos will plunge further. Only a materially dovish surprise, such as the Fed signalling plans to pause rate-hike after July, will help reverse the current dynamic.Technical ViewsBTCThe sell-off in bitcoin has seen the market trading back down to test the bottom of the large falling wedge patten and the 20575 support level. Given the bullish reversal nature of the pattern, an upside move can still materialise while the current lows hold. Bulls need to see a quick break above 30175 to remove immediate downside pressure, however.
Source: Tickmill
