Bitcoin just went down by 9% yesterday, marking a second day of correction, but immediately went back up again.
The volatile movement happened not only to Bitcoin but other riskier assets as well, in the events of the announcement of the US’s interest rate decision and FOMC meeting report.
Bitcoin Went Volatile The Last 2 Days
The correction happened after the US Central Bank announced a couple of news regarding the macroeconomic condition of the states.
Bitcoin’s price started going down after the news that real inflation started going back up again while at the same time, core inflation of the US went down.
This has prompted many investors to think that the current condition of the financial market might go back down to around 2022, because of the conditions around it that were the same as early 2022.
The narrative has started a correction which led Bitcoin to go down from it's all time high to around $66.000 after the data was announced.
Correction started to continue in the upcoming days of the FOMC meeting report announcement which is a report based on the meeting of the FOMC committee under the head of the US Central Bank that forecasts the future economic conditions of the US in the short term and the long term.
With this, come speculations that the price of riskier assets such as Bitcoin might go down significantly after the report was announced as the inflation is not yet being taken care of by the US Government.
The negative sentiment got even stronger because at the same time of the announcement, there was an interest rate decision announcement as well, where the market will know if the US is still on a dovish perspective with its policies or is it going to be hawkish again.
Luckily after the announcement is done, it can be confirmed that the policies around the monetary bodies of the US are still dovish with the interest rate being kept at a 5.25% to 5.5% rate by the US Central Bank and the overall forecast being dovish.
This immediately raised Bitcoin’s price back up again to its current price of $67,000 which is a huge relief for most retail investors.
The influx of news surrounding the market has made Bitcoin go back down by 9% to only go back up again by 9% in just the span of two days.
However this has been a regular event thanks to the US giving data every once a month that typically disrupts the market.
Where is The Price Going?
Currently, most investors think that the market is safe, but is that really the case? Sadly, looking at the technical chart above, the price seems to want to go down again as the daily candlestick is currently bearish.
Looking at the broken bullish trend, it can be seen that the price is currently consolidating after going down, which is usually a sign of a retest before going down even more.
The price of Bitcoin can only be saved if there was a sudden influx of buying volume by institutional investors, or if there was positive news that came into the crypto market.
Looking at the on-chain data and social media however, currently there is no positive news which might prompt Bitcoin to go down even more, reaching its current strong support.
The strong support level for Bitcoin is currently sitting at the $50,000, which might prompt it to go even lower after halving to around $35,000 based on previous halvings.
During previous halvings, Bitcoin tends to go down by around 20% to 50% after a huge price gain, which just happened a couple of months back.
So, there is a possibility of Bitcoin going down, which is why investors and traders need to be careful in the current market condition.
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