BTCUSD outlook dims amid tighter monetary policy of the Fed

23 April 2024 96
BTCUSD outlook dims amid tighter monetary policy of the Fed

The BTCUSD rate is showing moderate growth on Tuesday after the fourth halving on April 20. This event, highly appreciated by crypto investors, had almost no impact on the price of the leading cryptocurrency. Typically, previous halvings have often led to temporary price declines before reaching a new high around 220 and 240 days later.

 

Various market factors are currently affecting the price of the currency. Traders' main focus is on the preliminary US first quarter GDP report and the PCE price index, which will be released on Thursday and Friday respectively. These economic indicators will be key in shaping expectations for future actions by the US Federal Reserve, especially after the recent strong inflation data. Some central bank officials are not even denying the possibility of tightening monetary policy in the country.

 

Bitcoin is historically sensitive to the Fed's high interest rates. In the context of the current economic situation, according to CoinShares International Ltd, appetite for global crypto funds continues to decline. For example, in the week to April 19, $206 million was withdrawn from such funds and $244 million from US ETFs.

 

From a technical point of view, BTCUSD is in a broad downward correction on the H4 timeframe. The price, being in the middle of the channel, shows signs of reversal of the short-term upward movement. The RSI curve has left the overbought zone, signaling a potential decline in the price of the main digital currency. 

 

Signal:

The short-term outlook for the BTCUSD pair is to sell.

The target is at the level of 59,700.

Part of the profit should be fixed near the level of 63,300.

A Stop-loss should be placed near the level of 72,250.

 

The bearish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.

This content is for informational purposes only and is not intended to be investing advice.

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