Bitcoin (BTC) It lost most of the gains in its recent rally, losing 8% and falling to the level of $38,000. It has increased its sell orders in Bitcoin after US employment data and claims that the Federal Reserve will raise interest rates this month.
Traders seem to have identified the $35,000 level as the next support level. A possible breach will bring Bitcoin back to the levels it was two weeks ago, coinciding with the period when investors were avoiding risky assets. BTC has since recovered from its lowest level in the past month and has risen as high as $44,000.
$44,000 was also the highest Bitcoin faced in February. BTC has lost 18% this year.
one/$BTC â Saturday 5th March 2022
I was hoping for a bounce yesterday at the $39,260 but it didn’t happen.
We’re now back in the $35,000 â $39,000 territory and not a lot of major good news to kick start a rally.
So we might be going back to $35,000 support line, #Bitcoin pic.twitter.com/G0xEUKdCL6
â Steven Aitchison đ´ó §ó ˘ó łó Łó ´ó ż đ đ¤ (@StevenAitchison) March 5, 2022
Sentiment of Fed’s Interest Rate Increase Accelerates Falls!
bitcoin priceAlthough the economy was already on a slight downward trend over the past few days, it accelerated its losses right after strong US jobs data. Employment grew at the fastest pace in seven months in February, according to Yahoo Finance reports. The data was interpreted in conjunction with Fed Chairman Jerome Powell’s recent comments that the job market is warming and the Fed will likely raise rates by at least 25 basis points in March.
An increase in the interest rate will reduce the liquidity in the market and reduce the amount of cash that can be invested in Bitcoin.
Inflation and employment are the two main factors the Fed considers when setting interest rates. With US consumer prices at a 40-year high, an increase is likely at the Fed’s meeting on March 15 and 16. Powell’s hawkish comments also dismissed recent speculation that the Russia-Ukraine conflict would cause the Fed to halt its march plans.
Uncertainty caused by the conflicts between Russia and Ukraine Fed rate hike Broader financial markets bled after the data, as the odds were added. Concerns about Russia’s takeover of Europe’s largest nuclear reactor in Ukraine was also an important development that shook the emotions.
Despite leaving the stock market for about a week, Bitcoin fell in line with US stocks on Friday. Bitcoin fear and greed index fell back to extreme fear levels after being neutral for about a week.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.