Bitcoin price is trading around 33,393. BTC has been falling for seven weeks and after having reached the maximum of 48,043 on March 27. It has accumulated a loss of more than 30%.
In the medium term, analysts predict a decline in the price of Bitcoin as a result of the FOMC decision. Bitcoin price could retest the level 27,067 (200 EMA) as the target for the bears.
In the short term, analysts believe that continued weakness in the cryptocurrency market could dampen sentiment among investors. The price of Bitcoin could retest 32,731 which is the low of January 23 in the next few days.
BTC has a certain correlation with the Wall Street indices (Nasdaq-100). If these assets fall, BTC is expected to follow suit. The increase in interest rates negatively affects stocks, while investors exercise caution and withdraw capital from risk markets.
In the weekly chart, we can see that Bitcoin is under bearish pressure since September 19, 2021. It is likely that in the next few days Bitcoin could have a recovery towards 37,500, the area right at the top of the downtrend channel.
Since the beginning of December of last year, the price of Bitcoin has been trading below the 21 SMA. Every time the price of Bitcoin tries to break this moving average, the momentum tends to fall.
If the price of Bitcoin manages to trade below the 21 SMA located at 40,811, any impulse towards this area will be considered as an opportunity to continue selling with targets at 30,000 and 27,000 (200 EMA).
In the next few days, we can expect a technical bounce towards the zone of 37,500 or towards the psychological level of 40,000. This will be a recovery which will attract the bears and the price could resume its bearish trajectory. BTC and could reach the key level of 27,062 and could even hit 2/8 Murray at 25,000.
