• Economy
  • Investing
  • Editor’s Pick
  • Stock
Evil Shark Trades
Editor's Pick

Bitcoin Traders Target Test of $53,000 Support as BTC Price Predictions Remains Bearish Following Fed Meeting

by May 2, 2024
by May 2, 2024

The Bitcoin (BTC) price is consolidating in the mid-$57,000s, down roughly 5% on the day, though up around 1.5% or $1,000 from earlier session lows as traders weigh the outlook for Fed rate cuts this year in wake of the latest policy announcement from the US central bank.

As anticipated, the Fed left interest rates at multi-decade high levels of 5.25-5.5% and slowed its balance sheet run-off.

The central bank will now allow its portfolio of assets to shrink by only $25 billion per month. Before, the central bank had been allowing its balance sheet to shrink by $60 billion per month.

That reduction was a little larger than some investors appeared to anticipate and could explain the dovish market reaction to the initial policy announcement.

Bitcoin briefly pushed all the way to the mid-$59,000s, and US stocks pumped, though these moves quickly reversed.

Currently, Bitcoin is trading hands roughly in line with where it was before the Fed’s announcement.

As expected, Fed Chair Jerome Powell noted recent higher-than-expected inflation data readings so far this year.

POWELL: INFLATION DATA RECEIVED THIS YEAR HAVE BEEN HIGHER THAN EXPECTED

— *Walter Bloomberg (@DeItaone) May 1, 2024

He commented that gaining confidence to cut interest rates will take longer than expected.

POWELL: GAINING CONFIDENCE TO CUT WILL TAKE LONGER THAN THOUGHT

— *Walter Bloomberg (@DeItaone) May 1, 2024

According to CME data, the money market-implied odds that the Fed will have cut interest rates by 25 bps by September rose to 54% from 46% one day ago.

Meanwhile, the probability of no rate cuts this year dropped to 16% from 27% one day ago.

Ultimately, the market interpreted the Fed meeting as slightly more dovish than expected, explaining the Bitcoin price bounce from lows.

Where Next for the Bitcoin Price?


While Bitcoin may have recovered from earlier session lows, recent technical developments suggest more downside is coming.

Prior to Wednesday’s Fed meeting, Bitcoin had dropped nearly 5% from just below $61,000.

That drop came after it fell 5% from near $65,000 on Tuesday.

The decrease from earlier weekly highs comes as US economic data points to sticky inflation pressures and accelerated ETF outflows.

According to data presented by The Block, US Bitcoin ETFs have seen outflows for five days straight.

The drop in Bitcoin prices from earlier weekly highs comes as US economic data points to sticky inflation pressures and as ETF outflows accelerate. Source: The Block

Importantly, Wednesday’s dip saw Bitcoin break to the south of its two-month $60,000-$74,000ish range.

The next major level of support for Bitcoin isn’t until the mid-February highs at $53,000.

The next major level of support for the Bitcoin price isn’t until the mid-February highs at $53,000. Source: TradingView

Many analysts are now predicting that BTC will hit the low $50,000s.

Bitcoin will drop 13% to $50,000 after falling below a key support level as macro drivers slow, Standard Chartered says
Bitcoin has fallen past the ETF purchase price of around $58,000, putting over half of ETF positions underwater, Standard Chartered wrote.

— Ajay Bagga (@Ajay_Bagga) May 1, 2024

A few analysts mentioned that the average entry price of US Bitcoin ETF buyers at $57,300 is important to watch.

“There might have been lots of ‘TradFi’ tourists in crypto pushing longs into the halving,” 10x CEO Markus Thielen wrote.  “This time is now over. We expect more unwinding as… Bitcoin trades below $57,300. This will likely lower prices to… a -25% to -29% correction from the $73,000 top. That explains our price target of $52,000/$55,000 during the last three weeks.”

The post Bitcoin Traders Target Test of $53,000 Support as BTC Price Predictions Remains Bearish Following Fed Meeting appeared first on Cryptonews.

0 comment
0
FacebookTwitterPinterestEmail

previous post
House Republicans look to intervene in D.C.’s response to GWU encampment
next post
Coinbase Plans To Offer Stablecoin Pegged To Canadian Dollar

You may also like

Josh Fraser, Co-Founder of Origin Protocol, on Liquid...

Hong Kong Legislator Raises Concern Over Crypto Licensing...

Bitcoin Price Prediction: $150K Forecast and ETF Market...

Veteran Analyst Peter Brandt Predicts Bitcoin Price to...

Robinhood Implements Buying Restrictions on GameStop As Roaring...

Over $3 Billion Worth of ETH Withdrawn from...

Matter Labs Withdraws ‘ZK’ Trademark Application After Industry...

Rwanda to Roll Out CBDC By 2026 After...

El Salvador’s President Nayib Bukele Sworn in for...

FTX Estate Sells Off Remaining Anthropic Holdings Amid...

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Trump administration prevails as appeals court pauses lower court decision blocking contested tariffs
    • Walmart is using its own fintech firm to provide credit cards after dumping Capital One
    • Noem takes aim at Tim Walz for letting his ‘city burn’ in 2020 as she justifies Trump’s LA riot response
    • 148 Democrats back noncitizen voting in DC as GOP raises alarm about foreign agents
    • Dems join clergy to pray for ‘moral reckoning’ to fix Big, Beautiful Bill: ‘I still know how to agitate’

    Categories

    • Economy (6,197)
    • Editor's Pick (3,862)
    • Investing (2,826)
    • Stock (1,328)
    Email Whitelisting About Us Terms & Conditions Privacy Policy Contact Us

    Disclaimer: Evilsharktrades.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EvilSharkTrades.com


    Back To Top
    Evil Shark Trades
    • Economy
    • Investing
    • Editor’s Pick
    • Stock