Bitcoin Price Under Pressure as It Searches for Liquidity
The recent market events and news have put downward pressure on Bitcoin’s price, pushing it below key moving averages. This has implications for both retail investors and the overall market outlook.
Key Points:
- The release of the FOMC meeting minutes indicated the need for further rate increases in the US to control inflation.
- Elon Musk’s SpaceX’s write-down of $377 million in Bitcoin surprised the market and triggered a sell-off.
- Bitcoin is currently trading below the 21-week EMA, 50-week EMA, and 200-week EMA, which are considered necessary for the bull market.
- The daily chart shows Bitcoin struggling to rebound above $27,000, with strong support needed around $26,000.
- The MACD indicator adds to the bearish outlook, signaling a potential sell-off if support at $26,000 is broken.
Hot Take:
Investors should be cautious as Bitcoin faces downward pressure and the possibility of a further sell-off. However, this could also be an opportunity for investors to accumulate Bitcoin at lower prices before the next bull market, expected after the halving in April 2024.
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