BTC price fights for support amid warning of “bigger corrective move”
Bitcoin (BTC) has been in a precarious position since it experienced its most significant loss since November, at around $27,600, which marked a 10% loss before the weekly candle finally closed. The cryptocurrency is currently battling for last month’s support, with market participants divided on how the situation might play out. While some are betting on deeper downside, others remain confident that multi-month highs will be retested. This week, catalysts may come in the form of United States macroeconomic data releases and the next Federal Reserve interest rate decision. However, the recent correction that took some of the “greed” out of crypto sentiment could lead to more sustainable upside.
PCE print due as markets “price in” new Fed rate hike
Corporate earnings and economic data releases in the United States this week will center on GDP and jobless claims on April 27, as well as the March print of the Personal Consumption Expenditures (PCE) Index a day later. These data will influence the Federal Open Market Committee (FOMC) at its May meeting when the Fed decides on its next interest rate changes. Markets are in “wait and see” mode until the last of the figures are in, and consensus overwhelmingly favors yet another rate hike, further pressuring US banks and the wider financial system.
Panicking Bitcoin traders realizing losses
Last week’s BTC price action spooked many less experienced traders, and data from on-chain analytics firm Glassnode shows that they are beginning to realize their losses. Bitcoin’s price may have taken a hit, but not every class of Bitcoin investor is leaving the market. While fellow traders are still predicting that the worst is yet to come, others remain confident in the cryptocurrency’s prospects, especially as it has experienced a recent correction that could lead to sustainable growth.
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