Powell dropped bitcoin again. Will the bull market return?

US Federal Reserve Chairman Jerome Powell spoke in the Senate and, in his trademark fashion, crashed the markets.

Key points of the speech:

  • policy easing is currently undesirable;
  • a further increase in the rate is appropriate;
  • peak rates will be higher than expected;
  • We will keep the rate at a high level for a certain time.

The first result of this negativity was a change in the forecast for a rate hike in March. According to FedWatchalmost 75% of experts now believe that the US Federal Reserve will again return to increase by 0.5% instead of 0.25% previously expected.

Forecast of the US Federal Reserve rate hike on March 22. Source: FedWatch

Then the stock and cryptocurrency markets began to fall and, accordingly, the dollar index (DXY) and US bond yields grew.

According to the Cryptocurrency Screener Cryptovizorwhich determines the market price of BTC/USD based on the results of trading on the largest spot exchanges, bitcoin fell to $21,805 today.

12 hour bitcoin chart. Source: Cryptovizor

WITH points of view trader Crypto Tony, the situation is bearish. He drew attention to the lower highs on the chart and reported that he continued to hold a short position in bitcoin.

30 minute bitcoin chart. Crypto Tony Forecast

Michael van de Poppe, head of the trading firm Eight, also expects further depreciation of the cryptocurrency, however thinksthat the fall would end at $21,200. He added:

If we want $30,000, then we need to go back to $23,000.

Bitcoin daily chart. Prediction: Michael van de Poppe

Cryptovizor CEO Alex Zukutoke studied the weekly Bitcoin chart and came to conclusionthat the bull market will not return until the price consolidates above $25,000.

Bitcoin weekly chart. Analytics: Alex Zukutoke

Today, Powell is due to continue his speech to the US Congress (18:00 MSK). Let’s hope it doesn’t get worse.

The most interesting and important news on our channel in Telegram

Comments (No)

Leave a Reply