As the crypto space was eagerly waiting for a bull rally, the cryptocurrencies took a complete opposite direction as the market crashed. The crash was led by the cryptocurrency king, Bitcoin as the price took a deep dive trading below $37,000.
This observed to be parallel to the US Stocks. The Nasdaq composite index has dropped by 5%, the worst performance in about two years now specifically June 2020, and with this Tech Stocks have wiped out hundreds of thousands of investors dollars.
Since the beginning of 2022, stocks and shares have been wrestling to find a stable price action and this is due to the United States Federal Reserve’s hawkish approach toward market policies.
The Fed has increased the interest rate by 50 basis points, which is the first time ever in the last 22 years and this move is due to increased inflation.
Below is my chart on daily and 4 hours timeframe for your perusal
However, Fed chair Jerome Powell said that a 75 basis point interest rate hike will not be seen. This information has brought a bit of relief as the market positively responded though it was short-lived response.
Bitcoin’s massive decline corresponded with the US dollar index (DXY), where DXY rallied to its highest level since December 2002.
In my humble analysis I expect Bitcoin to rally to the $40,000 resistance zone anytime soon. Therefore, sellers should try take profit or set a tight stop loss.
Thank you for your time