U.S Inflation Hits Bitcoin (BTC) and the Broader Crypto Market

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Bitcoin ( BTC ) saw it’s 4-day winning streak come to an end on Thursday.Reversing a 0.78% gain from Wednesday, Bitcoin fell by 2.01% to end the day at $43,532.It was just the 2nd pullback in 8-sessions.Things were not much better for the broader crypto market.Terra ( LUNA ) tumbled by 8.82% to lead the…

Bitcoin ( BTC ) saw it’s 4-day winning streak come to an end on Thursday.Reversing a 0.78% gain from Wednesday, Bitcoin fell by 2.01% to end the day at $43,532.It was just the 2nd pullback in 8-sessions.Things were not much better for the broader crypto market.Terra ( LUNA ) tumbled by 8.82% to lead the way down, with Solana ( SOL ) sliding by 6.87%.

Ripple ( XRP ) and Ethereum ( ETH ) weren’t far behind, with losses of 5.06% and 5.28% respectively.U.S Inflation and a NASDAQ 100 Sell-Off Hits the Crypto Market In the early hours of Thursday, we had highlighted U.S inflation figures and U.S market reaction to the numbers as key for the crypto market on the day.In January, the U.S annual rate of inflation accelerated from 7.0% to 7.5%.The pickup in inflationary pressure forced the markets to price in a more aggressive FED rate hike path for the year.In response to the stats, the NASDAQ 100 ended the day with 2.10% loss.

Bitcoin reaction to the numbers further justified the IMF’s concerns over the interconnectedness of cryptos and the U.S equity markets.In response to the inflation figures, Bitcoin slid from $44,973 to an intraday low $43,254.Tracking the NASDAQ 100, Bitcoin bounced back to strike an intraday high $45,837 before sliding back to sub-$44,000 and into the red.Bitcoin Fear & Greed Index Continues Upswing In spite of Thursday’s pullback, the Bitcoin Fear & Greed Index held steady at 50/100 overnight.Having pulled back from 54/100 on Thursday, avoiding a fall back into the red zone was key.

Near-term, however, trend will be key.

The Index will need to move back through Wednesday’s 54/100 and through to 55/100 levels to support Bitcoin’s run at $50,000.For the day ahead, further market reaction to Thursday’s inflation figures will influence, which leaves the NASDAQ 100 in the driving seat.Bitcoin Price Action At the time of writing, Bitcoin was down by 0.37% to $43,373.A move through the day’s $44,208 pivot would support a run at the first major resistance level at $45,161.

Bitcoin would need support to break back through to $45,000 levels, however.

In the event of an extended rally, Bitcoin could test resistance at $47,000 before any pullback.Plenty of support would be needed, however, for a breakout from Thursday’s high $45,837.The second major resistance level sits at $46,791.Failure to move through the pivot would bring the first major support level at $42,578 into play.Barring an extended sell-off, Bitcoin should steer clear of sub-$42,000 levels.The second major support level sits at $41,625.The NASDAQ 100’s movements will continue to influence following Thursday’s moves.

At the time of writing, the NASDAQ 100 mini was down by 37 points.Looking at the EMAs and 4-hourly candlesticks (see below), the signal remains bullish.The 50-day EMA has pulled further away from 200-day EMA after this week’s bullish cross.The 100-day EMA has also narrowed on the 200-day EMA.

A bullish cross of the 100-day through the 200-day EMA would further support the move towards $50,000 levels.Key near-term, however will be for Bitcoin to avoid a fall back through the 50-day EMA, currently sitting at $42,270 levels, to sub-$42,000..

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