The well-known cryptocurrency trader Michael van de Poppe posted his most recent technical analysis for the Bitcoin market today in the wake of remarks made by the U.S. Federal Reserve Chairman Jerome Powell on Tuesday that sent the stock market and Bitcoin into a wild dive.
Powell stated in a hearing before the U.S. Senate Banking, Housing, and Urban Affairs Committee that recent inflation data indicates the Fed may eventually need to raise interest rates higher than anticipated.
According to Poppe, the stance was that we would have a relatively hawkish power in which we might receive a higher federal funds rate, meaning that Powell is increasing his interest rates on a monthly basis based on events and the data when it comes to CPI inflation, labor markets, and more.
“However all of a sudden the inflation data comes in higher and as a result, we can see that the markets are correcting right now and the Fed wants to continue doing its policy. The question is are they going to do and are the markets buying it and what’s actually taking place when it comes to the inflation data.”
The inflation data, according to him, has been a little bit twisted. He said one argument could be that China wakes up and comes out of the lockdown, meaning that there is some sort of higher prices coming out of that country and as a result, the inflation every day is a little bit higher at this point.
The other argument he cited is that the metric being used to determine the inflation data has been adjusted, meaning that there is a little higher number coming out right now.
Talking about the Bitcoin price action, he said that it is consolidating right now but it is still in a higher time frame support area.
“Looking at in terms of a technical standpoint here well we’ve got a clear resistance point at 22.6K and we had a clear support level around 22k.”
Source: https://coinpedia.org/bitcoin/bitcoin-btc-price-to-crash-more-ahead-of-interest-rate-hikes/