The Fed raised interest rates by 50 basis points on Wednesday, as expected. When the market, pricing a more aggressive Fed, perceived the Fed as a hawkish dove, the Bitcoin (BTC)-led crypto market took off. On the other hand, the market reversed today and Bitcoin slumped below $37,000. A crypto expert says worse is on the way and BTC will plunge to the bottom.
“A possible support level for Bitcoin is at $27,200”
Fairlead Strategies founder and managing partner Katie Stockton states that the chart of the leading crypto Bitcoin has broken and she expects BTC to decline with the stock market. The expert says he is ‘eerily quiet’ in the crypto market, especially when talking about Bitcoin.
Katie Stockton states that Bitcoin’s long sideways movements are quite capable of breaking the current support level. Referring to Fibonacci technical levels, the expert points to $27,200
as a possible level where Bitcoin could find the next support when it starts to drop
Also, Katie Stockton points out a strong correlation between Bitcoin and the Nasdaq 100, which is currently bearish. He states that S&P 500 indices should now be seen as a risky asset as Bitcoin can follow these stocks. The expert also looks at the stock market and expresses the opinion that nothing positive can be said about this market in terms of technical analysis.
BTC fell below 37 thousand dollars after historical rate hike
As mentioned in the news of Kriptokoin.com, the Federal Reserve increased interest rates by half a point on May 4, in line with expectations, with the highest interest rate increase in 22 years. On the day of the event, Bitcoin first responded to this historic event with an increase of almost 3%, reaching as high as $39,868.
However, today the leading cryptocurrency has declined, wiping out this gain and sagging further. At the time of writing, Bitcoin was trading at $36,940, losing over 5% in the last 24 hours, according to CoinMarketCap data. The leading crypto is about 46% off its all-time high of $69k in its current state.
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