Bitcoin has dropped to under $25,000 after the Federal Reserve dot plot suggested higher rates ahead. This, despite pausing after 10 consecutive rate increases over a 15-month period. The Fed sees two more rate hikes for 2023 and no cuts.
Technically, bitcoin is playing out a head and shoulders top. It has broken the neckline, pulled back and continued lower. The pattern's measured move is to $23,600. Whilst targets are academic in nature – they may or may not be hit – the downside target does infer the bearish pressure that the cryptocurrency is facing.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.