The bitcoin daily chart (left side) has dropped into its neutral channel between its blue bands. The H4 chart (right) is more granular. Here, the cryptocurrency has charted a lower peak followed by a lower trough. This is a defined downtrend.
Friday's core PCE release has applied a pressure to BTCUSD.
The top chart is the US10-Year real rate which appreciated following the 0.6% m/m print, which was higher than the previous 0.4% m/m and the 0.4% m/m expected. BTCUSD (bottom) moved in a southeasterly direction following the release.
Participants are concerned over the Fed hikes to control inflation. The market is now pricing 25 bps in March, May and June. These hikes may dampen the demand for risk, including cryptocurrencies and bitcoin.
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.