Bitcoin (BTC) opened the trading session on Wall Street from a peak above $41,500 on March 21 as the latest gain continued last week.

BTC/USD 1-hour light chart (bit-mark). Source: Trading View
McGlone: ​​Fed says ‘don’t buy the dip’
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was up $500 before Wall Street opened to see a strong start after the best weekly close in four weeks, but the gain was short-lived.

In the midst of a buoyant stock market, the largest cryptocurrency showed mixed signs on a lower timeframe as traders waited to see how far the current trajectory might go.

For popular crypto trader Ed, the area around $41,500 was important as a potential pivot point – there could be a bounce and continuation, providing an opportunity for long trades, but the path meant a trip below $40,000 for support.

In his latest YouTube update, he listed $37,000 as a potential downside target.

Meanwhile, trader Pierre analyzed the four-hour chart and called the $40,800-$41,200 area a “must hold.”

LTF reversal today imo (break it, teleport to 42.0-42.5k) contained in a recent post on the spot price Twitter thread.

Meanwhile, Mike McGlone, chief commodities strategist at Bloomberg Intelligence, shared some disturbing news for those who had hoped the stock market recovery would last longer to improve the overall macro picture.

“So we have the most expanding stock market in relatively 20 years… the most expensive stock market in terms of GDP in human history, the most expensive stock market for real estate and world stocks… and that is part of what caused inflation. And the Federal Reserve has to stop that inflation,” he said on the Wolf of All Streets podcast on Monday.

“So, for me, this is the most important mystery of this year; that if it is not filled – that is, the stock market will fall by a third – there will be problems.
So the bet was already on a significant stock correction, with a positive correlation between bitcoin making losses for its holders a huge liability.

McGlone also cited hints from US Federal Reserve Chairman Jerome Powell that further rate hikes could occur at other FOMC meetings to curb inflation.

“That was my warning to people who haven’t figured it out yet: ‘Don’t buy bathing’ is for people who haven’t learned their lessons,” he said.

For bitcoin in particular, he set a goal of making $100,000 a year, but the market “could easily see $30,000 at first.”

Germany discloses inflation risks
Before the opening of Wall Street, a lot of difficult macroeconomic news came from Europe.

Related Topics: “No More 4-Year Cycles” – 5 Things You Need to Know About Bitcoin This Week

Despite the improvement in European stock indices compared to the month of the war between Russia and Ukraine, inflation indicators showed the extent of the headache that politicians have.

Market watcher Holger Schepitz caught sight of the German Producer Price Index (PPI) on Monday.

He warned that “in February, the German producer price index jumped 25.9% year-on-year. This was the highest increase since statistics began to be collected in 1949. The previous producer price index at the same time rose by 12.4%.

German PPI chart. Source: Holger Zschepitz / Twitter
Like BTC, classic gold has meanwhile been in safe havens and also looking for direction, catching up in the headlights on Friday and trading at $1934 at the time of writing.

One day XAU/USD slideshow. Source: Trading View
In cryptocurrencies, the mood was dictated by stable performance, and none of the top 10 cryptocurrencies by market capitalization rose more than 5% in a day.

Source: CoinTelegraph

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