Bitcoin bounces off 10-month low but what now after breaching trend line? – Cryptocurrency News



Bitcoin and other cryptocurrencies have been having a dreadful time lately, plummeting across the board amid the deteriorating sentiment in financial markets. Stocks have been hammered since the end of March as worries about the pace of monetary tightening, surging inflation and weakening growth prospects have taken a toll on investors. For crypto markets, it is the end of the easy money era that’s likely mostly behind this latest selloff.

Cryptos increasingly correlated with stocks

The Federal Reserve raised its key lending rate by 50 basis points last week. That was the biggest hike in 22 years and comes less than two months after ending its quantitative easing programme. The rapid switch from ultra-loose policy to a super-aggressive one has jolted markets, sparking a massive round of deleveraging as the excess cash has dried out. This has hurt growth and tech stocks quite substantially, but probably not as much as it has cryptocurrencies – long seen as the riskiest of asset classes by some.

The strong correlation between cryptos and equities in recent months, particularly with high-growth and high-valuation stocks, has underscored Bitcoin’s status as a risk asset, shattering once and for all the myth that digital coins can act as a safe haven during times of turmoil.

That’s not to say that cryptos will never behave independently of stock markets again. Far from it, as their unique attributes are as valid as ever and as recently as the Russia-Ukraine crisis, the conflict generated notable demand for Bitcoin and its rivals. However, Bitcoin’s growing adoption by institutional investors has made it more aligned with broader market trends.

Is Bitcoin’s fate tied to Fed rate hikes?

Hence, its prospects for a meaningful rebound in the near-to-medium term are probably tied to the Fed’s rate path, which in turn will be determined by what happens to inflation. Policymakers and traders alike are hoping that inflation in the US is close to peaking.

Should a peak begin to emerge, that would put an end to the Fed’s constant hawkish tilts. Moreover, there would be greater clarity on what the Fed's terminal rate will be, which has been a great source of uncertainty for the markets.

$30,000 level is looking shaky

However, for Bitcoin, there are many obstacles towards restoring a bullish outlook. The $32,950 area blocked today’s advances, while the 78.6% Fibonacci retracement of the January-March uptrend at $36,221 is another potentially strong resistance point as it’s near the long-term ascending trend line that was recently breached. Higher up, the $39,700 stands in the way of reaching the 50-day moving average just above $41,000, which is needed for eliminating the negative bias.

Bitcoin has already lost more than 50% of its value from its all-time high of $69,000 set in November 2021 and the losses could deepen if the crucial support at $30,000 doesn’t hold. The price already briefly dipped below it earlier today, hitting a near 10-month low of $29,731, but later managed to bounce higher. If the $30,000 support is broken, the next stop for the bears may not come until the 161.8% Fibonacci extension of $23,505.

The RSI suggests a tepid rebound may be underway, but without a strong turnaround in risk appetite, Bitcoin will probably struggle to recoup much of its recent losses.

면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.