Bitcoin Falls After Fed Decision, BTC Bears Eyeing $50,000
Bitcoin remains under pressure, slipping even after the Federal Reserve's decision to hold interest rate steady amid rising inflation
The Bitcoin price action was no different than the day before: Sellers dominated, and the sell-off extended. As things stand, not only has the bear trend been defined, but bears are increasingly targeting $50,000. This level is a psychological round number and even the last frontier for optimistic bulls hoping for a recovery in the sessions to come. Before then, traders can best align with the current trend, lining up shorts of April 30.
As it is, Bitcoin is down 13% in the previous trading week, losing 7% in the past day. Additionally, losses are at the back of increasing trading volume. The average trading volume stands at $47 billion, up 18% from the previous day. The dump will only serve to attract even more sellers, pushing participation even higher and cementing bears’ position.
The following Bitcoin news events are worth watching:
- Yesterday, the United States Federal Reserve kept interest rates unchanged at 5.50%. However, the central expressed their concerns about rising inflation. They will keep tracking this key economic metric and implement measures to curb rising price pressures.
- Changpeng Zhao, the former CEO of Binance, was yesterday sentenced to four months in prison. In a post, Zhao said he would do his time and put everything behind. For now, he’s calling on crypto protocols to remain compliant with laid down laws.
Bitcoin Price Analysis
BTC/USD continues to slip when writing, dumping over 20% from all-time highs.
In a bear breakout formation, Bitcoin traders can look to trade with the trend. Accordingly, given the dump, every attempt higher in lower time frames may offer entries for shorts targeting $50,000.
Notice that prices are also trading below April lows, and trading volume is increasing, suggesting involvement of sellers. Most appear to be doubling down, fueling the sell-off.
Any unexpected surge above $60,000, backed by rising trading volume, might revive demand.
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