Bitcoin fell below the key 60K level as the risk sentiment remains negative as we head into the FOMC rate decision later in the day. Technically, the next support comes around the 52K level where we can find a trendline. The recent hawkish Fedspeak, the hot US data, the rising Treasury yields and the hawkish market’s pricing put a lid on further gains with the cryptocurrency now looking toppish. Yesterday’s US ECI report showed that the Fed might need to step up its tone if it wants to sustainably achieve the 2% target within a reasonable timeframe.
The market needs some easing in inflation data coupled with resilient growth to keep charging higher but until then, Bitcoin might remain in a downtrend.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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