07.05.202218:42 Forex Analysis & Reviews: Bitcoin got confused immediately after the Fed rate hike, but then everything fell into place.

Over the past week, bitcoin has continued its decline. In principle, this is not surprising, since a few weeks ago, the quotes of the "bitcoin" on the 24-hour TF were fixed below the ascending channel, which is a signal to fall. This is exactly the drop we have been seeing in recent weeks. At the moment, bitcoin is moving to the nearest support level of $ 34,267. It is not moving too fast, but still, it accelerated significantly on Thursday, the day after the publication of the results of the Fed meeting. It should be noted here right away that the markets as a whole reacted very illogically to this event on Wednesday evening, but corrected it on Thursday. For example, the US dollar fell on the Fed rate hike, as well as on the "hawkish" rhetoric of Jerome Powell, but rose the next day. About the same thing happened with bitcoin, which rose on Wednesday, but fell heavily on Thursday. So, in the end, everything fell into place.

Tightening monetary policy is bad for cryptocurrencies.

Although various cryptocurrency experts continue to insist that bitcoin will grow to $ 100,000 in the near future, that a new "bullish" trend is coming, and the cryptocurrency will become a universal means of payment in the coming years, the cryptocurrency continues to show a drop in the last six months. The maximum value that it has managed to reach recently is the level of $ 48,000. This growth was shown as part of an upward correction after a 50% drop. Thus, there were no "bullish" factors behind it. There was just a technical correction.

Now we see all the signs of a resumption of the downward trend. So there is every reason to say that the first cryptocurrency in the world will fall below the level of $ 34,267. In recent months, we have been constantly saying that we expect to see a "bitcoin" near the level of $ 31,100. In the future, we expect a stronger fall, since the fundamental background is not on the side of risky assets, which include even stocks that are much more stable than cryptocurrencies. It should be remembered that no one has canceled market laws and mechanisms. When the central bank raises the rate, it means that the yield of safe assets, such as bank deposits or bonds, increases. Naturally, there is a growing demand for them. And since capital tends to flow from market to market, then "somewhere it arrived, somewhere it decreased." Paradoxical as it may sound, but if bitcoin showed growth now, it could count on stronger growth, because in this case, investors would use it as a protection against inflation, which is now a headache for the whole world. But bitcoin is not growing, so it does not bring any profit to new investors. There are no new investors - bitcoin is not growing. We are inclined to continue the fall.

On the 24-hour timeframe, the quotes of the "bitcoin" were fixed below the Ichimoku cloud and the ascending channel. Thus, sales with targets of $ 34,267 and $ 31,100 have become relevant again at this time. The first target has almost been worked out, and if it is overcome, the cryptocurrency will continue to fall with the second goal. There are no reasons to expect cryptocurrency growth now.