After a long period of heavy selling, crypto markets saw a small respite yesterday. The Fed raised rates higher than expected yesterday and advised they will do whatever is required to get inflation back around the 2% level.
Whether it was a point of oversold value or market confidence in the Fed’s message of action, the result was a recovery in risk markets. From FX to indexes and crypto buyers pushed back, posting higher closes after days of selling.
This morning the script continued on from yesterday as buyers continued to hold sway, but this changed into the LON session as a wave of new sellers moved in, knocking the wind out of buyer sails.
Bitcoin is the focus of today’s report. After 8 hours of buying, sellers stepped in, re-holding 22,670 resistance. Since that point, we are now seeing three straight bars lower. From here, the 4H show’s a V pattern which could become a reversal but the trends are definitely lower at the moment, and price failed to break 22,670 resistance. We see two paths from this point. One, buyers manage to break resistance extending the current recovery. Two, we see the current selling expand with a new move back to support. If we see a break of support, this could set up a new extension of the current downtrend.
The post Crypto News: Bitcoin stalling after yesterday’s recovery? appeared first on Eightcap.