3 - 5 minute read
Bitcoin (BTC) has seen its most significant losses since November 2022, losing around 10% before the weekly candle finally closed. At around $27,600, BTC/USD is now caught battling for last month’s support. Market participants are in two minds as to how the situation might play out – some are betting on deeper downside, while others remain confident of retesting those multi-month highs. Catalysts may come in the form of United States macroeconomic data releases later in the week, while markets are also gearing up for the next Federal Reserve interest rate decision.
BTC/USD now faces a decision – sit near current support, also a focus in March, or break out. “Spot premium back to the same levels it was at previously while trading at this price range. Funding rates slightly negative across the board. Nothing insane yet,” popular trader Daan Crypto Trades summarized on the day. Fellow trader Crypto Tony maintained his target of $26,600, while Caleb Franzen, senior market analyst at Cubic Analytics, said that higher levels must return for bulls to gain the upper hand.
The week’s macro triggers come principally in the form of corporate earnings and economic data releases from the U.S. These will center on GDP and jobless claims on April 27, as well as the March print of the Personal Consumption Expenditures (PCE) Index a day later. Corporate earnings will also continue, while looming on the horizon is the May meeting of the Federal Open Market Committee (FOMC) at which the Fed will decide on its next interest rate changes.
The Bottom Line
According to CME Group’s FedWatch Tool, consensus is now overwhelmingly in favor of yet another rate hike, further pressuring U.S. banks and the wider financial system. The chances of another 0.25% hike currently stand at 85%. It is no secret that
#FireCharts shows a new block of ask liquidity suppressing #Bitcoin price, likely trying to push price into their bids in the $27.3k – $26.7k range. #NFA pic.twitter.com/ThOwqUT09R— Material Indicators (@MI_Algos) April 23, 2023