Bitcoin Price Plunges Ahead of Interest Rate Hikes: Analysts Warn
• Michael van de Poppe conducted a technical analysis of the Bitcoin market in response to remarks by Federal Reserve Chairman Jerome Powell indicating that interest rates may need to be raised higher than expected.
• The inflation data has been slightly distorted, either due to China coming out of lockdown or due to the metric being used.
• According to van de Poppe, Bitcoin is currently in a support area around 22k and has resistance at 22.6k.
Michael Van De Poppe’s Technical Analysis
Federal Reserve Chairman Jerome Powell recently made remarks during a hearing before the U.S. Senate Banking, Housing, and Urban Affairs Committee that sent both the stock market and Bitcoin into a wild dive. His statement indicated that recent inflation data may indicate the Fed needing to raise interest rates further than anticipated. This prompted well-known cryptocurrency trader Michael van de Poppe to conduct his most recent technical analysis for the Bitcoin market.
Inflation Data Distortion
Van de Poppe argued that monetary policy would be relatively hawkish as it could lead to higher federal funds rate depending on events and data related to consumer price index (CPI) inflation, labor markets, and more. He stated there are two possible explanations for why inflation data is appearing distorted: either due to China coming out of lockdown or due to adjustment of metric used for inflation calculation leading to a higher number being reported each day.
Bitcoin Price Action
The cryptocurrency trader then went on to discuss Bitcoin’s current price action in terms of technical standpoint with clear resistance point at 22.6K and support level around 22k. He noted that it is currently consolidating but still in a higher timeframe support area which should not be broken easily anytime soon according to him if no major news come out regarding interest rate hikes from Federal Reserve Chairman Powell or other sources as well as negative sentiment from retail investors towards BTC/USD pair after witnessing massive correction during past few weeks of trading period..
Implications Of Interest Rate Hikes
Van de Poppe cautioned traders against getting carried away by potential bullish scenarios regarding Bitcoin prices since there are many factors outside its control such as US Dollar’s strength over other fiat currencies like Euro which might cause further corrections if not managed properly by government authorities responsible for controlling national currency exchange rates.. Furthermore he also warned against any big move towards up or down side based on speculation only without having proper understanding about macroeconomics involved with such decisions taken by Federal Reserve Banks around world who are playing key role in managing global debt crisis while keeping an eye on economic growth figures released periodically from various countries across globe..
Despite uncertainty surrounding Federal Reserve Chairman’s decision about raising interest rates further than what was initially thought earlier this year; cryptocurrency trader Michael van de Poppe believes that current levels of support will hold strong unless some major event takes place which causes drastic changes in sentiment among investors towards BTC/USD pair or US Dollar suddenly gaining strength over other currencies making them less attractive investments than gold or digital assets like bitcoin etc..