Bitcoin (BTC) tumbled at the Wall Street open on February 16 as markets held their breaths over the upcoming comments of the US Federal Reserve.

Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Trader: Bits and Explosions ‘Make sense’ for Bitcoin
Data from Cointelegraph Markets Pro and TradingView tracks the rapid decline of BTC/USD in early trading to a low of $43,312 on Bitstamp.

The pair managed to reach $44,500 overnight and those gains faded as traders waited for signals from the Federal Reserve about inflation, cut in asset purchases and a significant hike in interest rates.

Since bitcoin and altcoins are closely related to stocks, all the tests of traditional markets in the form of higher interest rates can be quite bleak for crypto investors.

The written document, due at 19:00 UTC, will cover the FOMC meeting at the end of January.

Commenting on the incident, Gina Martin Adams, head of equity strategy at Bloomberg Intelligence, argued that cutting the Federal Reserve’s balance sheet, now approaching $9 trillion, could be more painful for stocks than raising interest rates.

“I’m still more concerned about the balance sheet than rising interest rates. Since 2010, balance sheets have accounted for nearly a third of multiple market movement, and at least 100 basis points. On the balance sheet, they can cut 29 basis points. Forward P/ ES&P 500,” she said. .

Hence, the mood among cryptocurrency traders was more cautious than cautious optimism.

“I still think there will be more upside, but a short-term pullback and/or pruning before major opponents break out makes sense sooner rather than later,” the popular Crypto Chase Twitter account said as part of the overnight comments.

For bitcoin trader and analyst Rekt Capital, the focus was off the hourly chart. The next close of the week, after last Sunday’s disappointment, still has a chance to reveal the upcoming trend.

BTC is trading higher
A look at the order book composition of the main Binance exchange on the same day revealed more encouraging signs.

Related: This 2018 Bitcoin Price Fractal Could Catch Speculators, Push BTC Price to $25,000 – Analyst

Over the past 24 hours, additional buying support opened at $43,000, along with a larger support area just below $42,000.

Meanwhile, supply chain analysis data from Material Indicators showed that $45,000 worth of sales orders were slowly dwindling.

Source: CoinTelegraph

LEAVE A REPLY