Bitcoin Falls on Hawkish Fed Minutes, Nears Key Support By Investing.com

Investing.com – Bitcoin fell sharply during the day yesterday, breaking several key thresholds, and deepened its slide in the evening after Fed minutes confirmed the Fed’s willingness to adopt a policy more and more hawkish.

The thus marked a low at $42,800 overnight from Wednesday to Thursday, a drop of 6% compared to the peak at $45,500 yesterday morning.

Minutes of the Federal Reserve’s March meeting, where governors discussed raising interest rates in half-point increments, revealed the Fed plans to ramp up its selling bonds, and reinforced market expectations for a 0.5% rate hike at the next Fed meeting.

Recall that last week, the chairman of the Fed, Jerome Powell, had raised the possibility of a hike of half a point in order to curb inflation, which, at nearly 8%, reached its highest level. for four decades and could potentially increase due to the conflict in Ukraine, which sabotages energy prices and global supply chains.

Technical thresholds to take into account on Bitcoin

From the point of view of graphical analysis, it will be recalled that Bitcoin broke yesterday under an important support zone around $45,000. Now, the next support will be the area composed of the $42,000 threshold and the 100-day moving average currently at $41,740.

A break below this key support zone would be a major bearish signal and put the psychological threshold of $40,000 into play.

On the upside, the $45,000 zone is now to be considered as immediate resistance, before the 200-day moving average at $48,250, then the psychological threshold of $50,000 and a chart resistance at $52,000.

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