Bitcoin, the major cryptocurrency, fell below $40K after the United States Federal Reserve made hostile comments.
Powell said Thursday that at the upcoming FOMC meeting, the Federal Reserve will consider raising the benchmark interest rate by 50 basis points (0.5 percentage point).
Bitcoin slips below $40K
Just a few days ago, the leading cryptocurrency reached a high of around $43,000, its highest level in more than 10 days. This was a particularly surprising price given that the asset had fallen to a monthly low of just $39,000 earlier this week.
On the other hand, BTC was completely rejected at its local peak and quickly reversed. The asset’s value plummeted to $40,000 within hours.
With the bulls losing the $40K support level, a level that has yet to be identified as a meaningful line this year, the more valuable coin has no shortage of negative medium-term outlook.
Bitcoin price failed to hold the significant levels of $41,500 and $40,000 despite strong negative control. Bears are expected to aim for a swing low of $38.536 from Monday, which is an obvious target for those still in the trade. If the swing bottom is breached, BTC price could be disappointed and drop to $36000.
As a result, the market capitalization of bitcoin has fallen to $750 billion, after briefly exceeding $800 billion earlier this week.
Related reading | Why ‘boring’ bitcoin can be a good thing
Buy or sell?
BTC price should open above $44,088.73 on Monday as Macron’s victory will push the dollar further lower, allowing for more bullish possibilities. Add to this the fact that news from Ukraine is increasingly becoming second-tier and slipping into the background, indicating that talks are still ongoing and a solution may be found at any time, with Russia’s military efforts now focusing solely on the West, instead . from the whole of Ukraine.
The French elections are the main risky event this weekend. If the far-right candidate Le Pen defeats Macron in the election, expect a major market turnaround and shock Sunday and Monday evening at the ASIA PAC session.
For now, investors are “waiting and watching” to see how the supply and demand situation will react to the support area. Since late January, BTC price has been trading in a “rising wedge pattern,” as shown on the weekly chart.
BTC/USD trades at $39k. Source: TradingView
A rebound is expected in price from the current level with bulls targeting the 51,000 mark. However, in this path of the journey, the bulls should close above the 50-day EMA (Exponential Moving Average) at 43,071 dollars.
Featured image from Pixabay, chart from Tradingview.com