Bitcoin (BTC) continued its decline at the open on Wall Street on Wednesday with its first test of $44,000 since early April.
BTC price hits two-week low
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit a 12-day low of $43,801 on Bitstamp, down more than 7% from the month’s high.
The move defied positive triggers in the form of new MicroStrategy and Terra acquisitions, but analysts were instead eyeing macroeconomic factors as the next potential BTC price driver.
Jeroen Blokland, portfolio manager at asset manager Robeco, said the 10-year US Treasury yield, trending higher throughout the year, should reverse direction and give risky assets a breather.
“We haven’t gotten to that point yet,” warned however that day.
US 10y yields jump to 2.56% thx largely to Brainard’s hawkish remarks, which raised fears ahead of FOMC minutes on Wed. pic.twitter.com/SpvFPKeFIB
— Holger Zschaepitz (@Schuldensuehner) April 6, 2022
In a possible counter move, the US Federal Reserve has revealed that an “aggressive” balance sheet reduction is due to begin in May, marking the end of the “easy money” policy that many had feared would put pressure on demand for risk assets.
“It is of the utmost importance to bring inflation down,” future Fed Vice Chair Lael Brainard said in remarks at a conference this week, quoted by the Financial Times, among others.
“Consequently, the committee will continue to methodically tighten monetary policy through a series of interest rate hikes and beginning to shrink the balance sheet at a rapid pace beginning with our May meeting.”
Inflation continued to disrupt sentiment beyond the US, with Eurozone annual producer price inflation making the biggest jump on record in February – over 31%. On the eve of war between Russia and Ukraine, future readings are likely to be even higher.
The current spot price zone is crucial to maintain
In a worrying environment, price watchers were keen to take a breather, calling for $44,000 to remain as a bullish base.
#BTC Daily
+ EMAs stacked in the same order
+ Price testing the 200 at the 0.618 retracementAll while trying to exit a 2-month long accumulation zone.
Hold this 44-45K area and we’re probably continuing up to the mid-50s. pic.twitter.com/buzl4vvFms
— TechDev (@TechDev_52) April 6, 2022
The private fund manager and contributor to CryptoQuant, known for his popular Gaah Twitter account, argued that $44,400 was the level to defend to avoid a tailspin that could take the market to $37,000.
“Something is wrong and the next few days will show what is happening,” Crypto trader Ed added, sounding more concerned.
A failure to hold $45,000, something that came later, would thus pave the way for the $43,000 low, he said in his latest YouTube update.
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