Bitcoin fell briefly below the $40K mark before gaining ground on Monday. After a short recovery over the weekend Bitcoin fell below the key resistance zone as the stock market losses deepened due to more hawkish Federal Reserve.
The US stock market is feeling the heat of the increasing hawkish sentiment from the Federal Reserve as it eyes on raising the interest rates and taking away the free money quicker than was expected. The crypto market also felt this heat and Bitcoin broke the key resistance level of $40K briefly before gaining ground. The Altcoins fell sharply. Ether plummeted below $3k. At the time of writing Bitcoin is trading slightly above $42K which is still a 9.10% decrease in the last 7 days.
The crypto market has been on a fall since 6 days after the Feds released their meeting minutes revealing more aggressive interest rate hikes in the upcoming days resulting in dip across the stock markets as well. Though Bitcoin seems to hold the $40K support but the upside is right now restricted to $43-$45K. The RSI (Relative Strength Index) on a 4 hour chart is rising above the oversold limit now predicting a small bounce back.
The fear and greed index reveals the sentiment is still on the extreme fear side with a value of 21. Though, the fear is being subsided now after last week’s extensive sell off.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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