The Bear Committee – Bitcoin (BTC) is once again facing a storm related to announcements on inflation measures in the United States. The eventual jolts could, however, bring the price of bitcoin dangerously close to $20,000.
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Bitcoin below $30,000: bullish hopes weighed down again by the FED?
The price of bitcoin rises above $30,200 today, May 25, 2022. It subsequently loses $30,000. Bitcoin is trading at $29,699 at the time of writing. The markets are currently entitled to a doji.
Uncertainty reigns in the markets, as the Federal Open Markets Committee (FOMC) published a minute setting out the measures to control inflation, already announced previously by the US Federal Reserve.
A increase of 50 basis points key rates is planned. Similar increases could also be announced at future meetings. The Committee also indicated that the policy – monetary – may have to go beyond a “neutral” position, to become “restrictive” for growth.
The minutes also contain a warning against “the trading and risk management practices of certain key participants in the commodity markets [qui] were not fully visible to regulatory authorities.
Will the current uncertainty be followed by a sharp drop in bitcoin price in the next 24 hours, just like in the Committee’s previous announcements?
strong downward pressure would challenge bullish patterns, like that of Michaël van de Poppe, which are based on the defense of an essential support. Trader Michaël van de Poppe believes that bitcoin could “finally” target $32,800 if it manages to hold above $29,400.
If the FOMC post-announcement decline does take place, the loss of $29,400 would not only invalidate this bullish scenario, but it would would make the bearish pattern even more credible put forward by trader Rekt Capital.
The latter asserts that a loss of $29,000 on a weekly basiscould bring back bitcoin around $22,500which are close to the weekly 200-week moving average of BTC.
Rekt Capital’s bearish theories are based on the death cross level of January 2022, as well as the history of bitcoin price movements before and after such an event.
The bulls were rejoicing in the continued decline of the dollar in recent days. But the FED and FOMC could once again postpone their long-awaited race.
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