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Bitcoin's technicals show that macroeconomic issues are still weighing heavily on the currency.
Since April 6, the Bitcoin price has been falling, having reached a local high of $46,700.
During the weekend, BTC traded in a narrow range between $42,100 and $43,400, indicating a pause. But on Monday, the price of Bitcoin fell by 7%, bringing it below $40,000 for the first time since March.
Today, the buyers are putting up a fight, although the volume is still minimal. Despite this, purchasers have been able to push BTC back up to the $40.000 mark once again. At $40,500 at the time of this writing, the current price is hovering dangerously near to that threshold.
It is the current geopolitical uncertainty that is fueling this current economic slowdown.
Bitcoin is heavily influenced by macro variables.
CryptoSlate reports that the White House expects inflation and the cost of living problem to reach "extraordinarily extreme" levels, raising serious worries.
Due to concerns that the Fed will continue to tighten monetary stimulus while also lowering growth prospects, global asset prices — particularly those of cryptocurrencies and other risky assets — will be under pressure.
When a central bank reduces its asset acquisitions, or "tapers," it does not always entail selling the assets it has purchased. It is, nevertheless, viewed as a sign that interest rates may rise in the near future.
There will be less money available for asset acquisitions if the debt markets are stifled by this policy. Consequently, the demand for hazardous assets will decrease, resulting in a situation in which there are more sellers than buyers in the market.
"Extremely aggressive" is how Technology Attorney Andrew Rossow described the Federal Reserve's plan to trim $95 billion every month.
“Earlier this week, the Fed announced that it would be reducing the central bank’s balance sheet by ‘trillions of dollars’ in bond holdings by approx. $95 billion a month – this is an extremely aggressive balance reduction in the central bank’s attempts to tighten its monetary policy with inflation rising.”
Still in use is the "Head and Shoulders" motif.
According to Francis Hunt, dubbed the Market/Crypto Sniper, macroeconomic and technical variables are all working against Bitcoin. There is a lack of technical strength in the Bitcoin price trend, according to Hunt
A failure to achieve $52,000 indicates that the head and shoulders pattern is still in effect despite pricing structure not breaking down as projected.
The three peaks of the head and shoulder pattern can be seen as a baseline. The center peak is the tallest of the three exterior summits. Buyers and sellers are engaged in a constant "tug of war," which is shown by the right peak or the second downturn.
BITCOIN is in poor shape technically, After reluctantly accepting the squeezing structure was not a downside break as expected, this is what I now see of danger:— TheCryptoSniper (@TheCryptoSniper) April 11, 2022
1. The H&S's [$69K] with $42K neckline, needed a $52K run for invalidation. NOT happened yet.@raoulGMI pic.twitter.com/zvccaitT0b
As soon as the price fails to break above the previous high, sellers assume control and drive the price lower, completing the reversal.
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