Investing.com – The cryptocurrency is down sharply following last night’s Fed meeting, as the cryptocurrency bottomed overnight at $35,745 after hitting a high near $39,000 just before the Fed’s announcements, a decline of around 9%.
Within hours, BTC/USD reversed the gains of the previous two days.
Faced with falling markets, many expected the Fed to seek reassurance, implying dovish risk. But nothing happened, the FOMC having confirmed the high probability of a first rate hike for the month of March.
Separately, at the press conference following up the FOMC statement, Fed Chairman Jerome Powell warned that inflation remained above the Fed’s long-term target and that supply chain issues may be more persistent than expected.
This sparked heightened risk aversion which also impacted equities, as seen yesterday in US stock markets and overnight in Asian markets.
Technical thresholds to watch on Bitcoin
From a chart perspective, note that the bearish impact of the Fed meeting has realigned Bitcoin with its underlying downtrend, evidenced by a descending trendline visible from last November’s all-time high on the daily chart. .
In the short term, the zone of $35,500-800 should be considered as an immediate support, before Monday’s low around $33,000, and the major psychological threshold of $30,000. On the upside, a move back above $40,000 is the first step to start challenging the cryptocurrency’s negative bias.
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