©Reuters
Investing.com – The cryptocurrency market shows a clear correction this Wednesday morning, with one moving towards $41,150, down 2% over 24 hours and 6.5% over a week, and other cryptos showing much worse falls.
For example, it loses more than 8%, while it loses more than 5%. However, it is the one that shows the worst fall in the top 10, with a decline of 16.5% over one day.
Note that this decline comes as a continuation of the correction movement started a few days ago, and after the US CPI data slightly higher than expectations published yesterday.
Elsewhere, investors are being cautious about speculative assets ahead of tonight’s Fed meeting, which will undoubtedly be the most important event of the week.
The challenge will be to refine expectations for what the Fed will decide for the first quarter of 2024, knowing that the market is currently taking into account a probability of more than 40% that the Fed will lower its rates in Q1 of next year .
If the Fed actually provides clues in this direction, and a rate cut in March once again becomes the base scenario anticipated by the market, the rise in Bitcoin and other cryptocurrencies could resume.
If, on the other hand, the FOMC indicates that it will be a long time before monetary policy is relaxed, BTC and its peers could worsen their decline.
From a graphical point of view, it is important to emphasize that the decline of Bitcoin since its annual high of $44,700 marked last week does not yet call into question the bullish trend of .
Indeed, it would be necessary to observe a break at least below $40,000 for the bullish profile in daily data to be called into question, and below $38,000 to validate a bearish reversal.
On the upside, the psychological thresholds of $42,000, $43,000 and $44,000 will be potential resistances, before Friday’s peak at $44,700, then the threshold of $45,000.