{"id":12043,"date":"2023-05-19T10:20:11","date_gmt":"2023-05-19T10:20:11","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=12043"},"modified":"2023-05-19T10:20:12","modified_gmt":"2023-05-19T10:20:12","slug":"bitcoin-price-retests-key-support-as-fed-rate-hike-fears-steal-27k","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12043","title":{"rendered":"Bitcoin price retests key support as Fed rate hike fears steal $27K"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) traded back below $27,000 on May 19 as analysis flagged large-volume trades pressuring price.<\/p>\n<p><em>BTC\/USD 1-day candle chart on Bitstamp. Source: TradingView<\/em><\/p>\n<h2>Inflation specter haunts crypto markets<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD hitting lows of $26,380 on Bitstamp.<\/p>\n<p>A modest recovery then took the pair to a range familiar from several days prior, this still in focus prior to the week\u2019s final Wall Street open.<\/p>\n<p>Downside overnight came courtesy of increasing market expectations of an interest rate hike by the United States Federal Reserve in June.<\/p>\n<p>These came thanks to low jobless claims data for the week, with Fed officials adding a hawkish tone.<\/p>\n<p>&#8220;On the one hand, inflation is too high, and we have not yet made sufficient progress on reducing it,&#8221; a speech by\u00a0board member Philip Jefferson at the 2023 International Insurance Forum\u00a0in Washington, D.C., stated. <\/p>\n<p>&#8220;On the other hand, GDP has slowed considerably this year, and even though the effect has been muted in the labor market so far, demand clearly has begun to feel the effects of interest rates that are 5 percentage points higher than they were a little over a year ago.&#8221;<\/p>\n<p>According to CME Group\u2019s FedWatch Tool, the odds of the Fed pausing its hiking cycle next month, at one point over 95%, stood at just 62% on the day.<\/p>\n<p><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/p>\n<p>In a detailed breakdown of the events, monitoring resource Material Indicators showed owners of bid and ask liquidity placing trades to manipulate BTC price behavior on short timeframes.<\/p>\n<p>\u201cAfter chopping sideways, markets began to price in potential for another rate hike as the morning&#8217;s Jobless Report and #FED speakers set the tone for that conversation ahead of #JPow&#8217;s appearance, scheduled for Friday,\u201d part of Twitter commentary summarized.<\/p>\n<p>\u201cAs price began to drop, a ladder of bids was rugged and price moved to prior support ~$26.5k, but a sell wall was quickly placed to suppress price.\u201d<em>BTC\/USD order book data (Binance). Source: Material Indicators\/ Twitter<\/em><\/p>\n<p>Material Indicators noted that BTC\/USD performed a retest of the 100-day moving average (MA) \u2014 its third in the past seven days.<\/p>\n<p>\u201cAfter about 90 mins and a few nibbles at the sell wall, the roof was pulled. Shortly after that a new $36M block of bids was placed below local support and the melt up began,\u201d it added.<\/p>\n<p>In addition to the 100-day MA, the 200-week MA at $26,100, the analysis concluded, could also form a downside support zone next.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp) with 100-day, 200-week MA. Source: TradingView<\/em><\/p>\n<p>Material Indicators referenced the May 19 appearance by Fed Chair Jerome Powell, with the implication that further hawkish language on inflation would add to risk asset price pressure.<\/p>\n<h2>Traders in &#8220;wait and see&#8221; mode<\/h2>\n<p>Traders thus maintained potential bearish targets, these focusing on a broad area around $25,000.<\/p>\n<p><strong><em>Related:\u00a0Hyperbitcoinization coming, says Bitcoin OG as \u2018wholecoiners\u2019 hit 1 million<\/em><\/strong><\/p>\n<p>Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, was among them, identifying $27,000 as the key support level now absent from the chart.<\/p>\n<p lang=\"en\" dir=\"ltr\">Wanted #Bitcoin to hold above $27,000-27,200. <\/p>\n<p>Didn\u2019t happen, stopped out on my longs and in the waiting game now. <\/p>\n<p>Reclaim that range, we\u2019ll try again, or now we\u2019ll be waiting for $26,400 sweep and\/or $25,000.<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) May 18, 2023<\/p>\n<p>&#8220;I am looking for a long if we can break above $27,500, or a short if we close below $26,600. No trade in between this tight range,&#8221; popular trader Crypto Tony added in part of Twitter comments.<\/p>\n<p><em>BTC\/USD annotated chart. Source: Crypto Tony\/ Twitter<\/em><\/p>\n<p>Trading suite Decentrader meanwhile flagged uninspiring numbers when it came to shorts versus longs, arguing that a shift was required for price to have a shot at reclaiming higher levels.<\/p>\n<p>&#8220;Long\/Short ratio is currently above 2 which is very high. This typically needs to resolved and move lower before things start looking bullish,&#8221; it acknowleged.<\/p>\n<p><strong><em>Magazine: \u2018Moral responsibility\u2019: Can blockchain really improve trust in AI?<\/em><\/strong><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-retests-key-support-as-fed-rate-hike-fears-steal-27k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) traded back below $27,000 on May 19 as analysis flagged large-volume trades pressuring price. BTC\/USD 1-day candle chart on Bitstamp. Source: TradingView Inflation specter haunts crypto markets Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD hitting lows of $26,380 on Bitstamp. A modest recovery then took the pair to a range familiar [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-12043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12043"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12043\/revisions"}],"predecessor-version":[{"id":12045,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12043\/revisions\/12045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12044"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}