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Bitcoin Falls After Fed Decision, BTC Bears Eyeing $50,000

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.

Bitcoin Daily Chart for May 2

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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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ABOUT THE AUTHOR See More
Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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