The rebound of Bitcoin is confirmed, will the Fed make it plunge again?

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Investing.com – It’s coming back up, with the cryptocurrency now back above $37,000, peaking at $37,545 last night, nearly 14% above Monday afternoon’s low of $32,980.

And although such a rebound may seem encouraging at first glance, the reality is that caution is still more important than ever with respect to Bitcoin and the cryptocurrency market.

Bitcoin’s rebound this week does not challenge the underlying downtrend

Indeed, despite the rebound of the past two days, Bitcoin remains more than 45% below its November 2021 high at $68,925, and the daily chart shows that BTC/USD is still far from challenging the bearish bias of fund.

In particular, we can spot a bearish trend line visible from the November high, which only a return above $40,000 would call into question. In other words, at this point, Bitcoin’s rebound from Monday’s low may well be just a pause before a resumption of decline.

In this context, this week’s low around $33,000 and the major psychological threshold of $30,000 will be the first supports to consider.

The fate of Bitcoin depends on the Fed this Wednesday

But technical factors are likely to take a back seat today as investors around the world, including those in the cryptocurrency market, have their eyes on tonight’s Fed meeting.

Recall that Bitcoin has tended to behave like a classic risk asset lately, falling in concert with equities in the face of fears of inflation and monetary tightening.

Therefore, tonight’s Fed meeting could significantly impact bitcoin, as well as exchanges. The question will be whether the Fed is more or less hawkish than expected, knowing that it is commonly accepted that the Federal Reserve will pre-announce a rate hike for the month of March, at least.

However, opinions differ on what to expect from the Fed meeting tonight, with some believing that the Fed will try to calm the markets, while others believe that it will reinforce the hawkish turn undertaken since. several months.

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