08.03.202317:06 Forex Analysis & Reviews: Powell's speech did not bring down bitcoin

The bitcoin cryptocurrency is still falling after it reached and bounced off the $25,211 level. Recall that we believe the price of the first cryptocurrency is still within the side channel of $15,500–$25,211 and that we support the option with a new decline in that price. The most reasonable conclusion will be a new decline in the direction of the lower limit because the upper limit of this channel has not yet been crossed. And thus far, we have observed this scenario being carried out. The cryptocurrency has already crossed the Kijun-sen line and entered the Ichimoku cloud on the 24-hour TF. The Senkou Span B line, which is now at $20,274, is the minimum target.

The fundamental background that may be of interest to crypto traders only appeared this week on Tuesday. It should be kept in mind that not all of the information that the currency market "digests" is pertinent to cryptocurrencies. Powell's performance is nevertheless crucial for everyone and necessary at all times. Yesterday, the head of the Fed made several unpleasant remarks all at once, which market participants could have predicted for themselves. But it's one thing to speculate or presume, and quite another when the Fed's chairman publicly states it. He also said the following: inflation may remain high for a long time, the Fed will not break from its price stability targets, the rate will have to be raised for a longer period than previously anticipated, and its growth rate may rise again. It is hardly worthwhile to draw attention to the "hawkish" aspects of anything Powell said once more. Also, they are like a spear to the heart of bitcoin and other digital assets.

In addition, Bitcoin has responded favorably to Powell's remarks. It might fall apart, like in the case of the euro or the pound. Instead, it only suffered a value loss of a few hundred dollars. Yet, it has been falling for some weeks, and it does not appear that this process will be completed. The "bitcoin" may have avoided collapsing yesterday, but this does not guarantee that it won't do so again. There are currently no growth factors for the first cryptocurrency, as we have stated numerous times. There are only temporary reasons to buy, which are rapidly destroyed by harsh reality and the fundamental background.

The "bitcoin" quotes failed to surpass the $25,211 auxiliary level throughout a 24-hour timeframe. If it doesn't hold, the "bullish" trend will be considered to have started, and the level of $29,750 will be the first target. If we look dispassionately at the current picture of the scenario, we still believe that a decline to $15,500 is more likely. The levels of $20,400 to $20,274 are the closest targets.