Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K

The Fed issued a stronger than expected statement on the economy and expressed optimism about recent economic data. Bitcoin is trading in a popular bear channel, traders are eyeing $28K as the next support level for BTC/USD.

The “bitcoin fomc” is a term that refers to the Federal Open Market Committee’s comments on bitcoin. This could be an opportunity for bitcoin to fall as low as $28,000.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K

The gloomy trend in crypto and equity markets has continued into May, and there is currently no evidence of any short-term variables that might reverse the bearish trend.

The stock market is also in a decline, and according to researcher Clara Medalie, the price of equities from firms with Bitcoin (BTC) exposure has also dropped significantly.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28KCompanies that have been exposed to Bitcoin vs. BTC. Twitter is the source of this information.

Medalie explained:

“Block, Tesla, Microstrategy, and Coinbase have all dropped between 20% and 50%.”

The early morning effort by Bitcoin (BTC) bulls to climb over $39,000 was easily defended by bears, resulting in a drop to the $38,200 mark, according to data from Cointelegraph Markets Pro and TradingView.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K1 day chart of BTC/USDT. TradingView is the source of this information.

Here’s what a few experts have to say about the present price movement, as well as what lower levels to watch in case of additional collapse.

There will be further decline till the 200-EMA turns to support.

Observing a closing above the 200-day exponential moving average (EMA), according to independent market analyst Rekt Capital, is a simple method to analyze Bitcoin’s present weakness. The score is a “indicator of long-term investor attitude toward Bitcoin,” according to the expert.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K1 day chart of BTC/USD. Twitter is the source of this information.

According to Rekt Capital,

“BTC hasn’t been able to stay above the black 200-day EMA for very long since mid-2021. Every time BTC broke above the EMA, it quickly retraced downward after losing it as support.”

The macro bottom might be $28,000.

Crypto trader and pseudonymous Twitter user ‘Cantering Clark’ provided insight into what may happen next for the BTC price, posting the following chart emphasizing the parallels between the present price behavior and BTC’s price action in July 2021.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K1 day chart of BTC/USD. Twitter is the source of this information.

Clark, who was cantering, remarked,

“We observed a similar pattern of violent sell-offs followed by feeble efforts to surge higher in July 2021, again after a longer-term sideways range had formed and lows started to be preferred. “A possible set-up for a trap.”

Veteran trader Peter Brandt had a similar perspective, stating that if the present “bear channel” holds, the Bitcoin price might fall to new lows.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K1 day chart of BTC/USDT. Twitter is the source of this information.

According to Brandt:

“A bear channel’s completion usually results in a decrease equal to the channel’s breadth, or in this instance, a hard test of $32,000 or so — my prediction is $28,000.”

Bitcoin’s ‘bad market,’ according to a trader with stocks due to surrender, may push the price to $25,000.

Long-term buildup is still going on.

Despite the current slump, data from glassnode reveals that BTC accumulation is increasing, as Twitter user Negentropic has pointed out.

Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28KChange in the net position of Bitcoin long-term holders. Twitter is the source of this information.

According to the experts,

“Panicked short-term investors suffered losses, while long-term investors saw their net position change grow.”

The total cryptocurrency market capitalization is currently $1.72 trillion, with Bitcoin commanding 42.5 percent of the market.

The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

The “fomc meeting time” is a comment from the Fed that has been seen as negative for Bitcoin. The “bear channel” could be kicked off by this and may lead to a decline in price.

Related Tags

  • bitcoin price
  • cryptocurrency bear market 2022
  • why crypto market is bearish today
  • has bitcoin hit the bottom
  • federal reserve
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