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Investing.com – The backdrop continues to deteriorate for the , with the cryptocurrency trading below $27,000 on Friday morning as of this writing, taking its losses to 9.4% from Saturday’s high last at $29.836, before the current bearish phase began.
Note that Thursday’s BTC weakness came despite rising expectations of a pause in Fed rate hikes, after hebo jobless claims exceeded expectations and PPI fell below consensus yesterday, which followed a weaker-than-expected CPI the previous day.
Indeed, crypto traders had already priced in the prospect of a Fed pause, and the small daily swings in expectations across published statistics no longer seem to be influencing cryptocurrencies.
Bitcoin’s failure to capitalize on the prospect of an end to the Fed’s rate hike can also be explained by issues specific to the cryptocurrency world, including congestion issues in the BTC network that suggest the biggest crypto on the market is far from ready to become a global currency.
Technical thresholds to take into account on Bitcoin
From a technical standpoint, the next support for the is the $26,500 area, ahead of the 100-day moving average at $26,100, and then the psychological level of $26,000. Lower, it is then the major psychological threshold of $25,000 that will come into play.
On the upside, $27,000 is an immediate hurdle, ahead of $28,000, then the 50-day moving average towards $28,550.