Yesterday was the first day of Powell's testimony before the US Senate Banking Committee, and today will be the second day of testimony. Traditionally, such events in the markets increase volatility.

At the speech, the head of the Fed voiced the following fundamentally negative theses:

1. The Fed is ready to accelerate rate hikes if data comes in strong.

2. The rate peak will likely be higher than many expect.

3. Core inflation is not falling as quickly as hoped; more work remains to be done

🤷‍♂️ In fact, the head of the Fed once again said the same thing as always. Only this time there were words about a higher rate peak and the possibility of a higher increase step appeared. Investors began to sober up and the markets began to correct.

On the SP500 chart, the price continues to try to break through the moving average MA200d and the downtrend downward. When this zone breaks out, the price will be able to fall with acceleration and will pull the crypto market with it.

💰 Technical analysis of Bitcoin

Yesterday the price broke through the lower boundary of the local ascending channel downwards. Now the price is trading almost around the support level of $21,550. Moreover, on lower timeframes the price broke through the Bearish Wedge pattern downwards. The target for this figure is a fall to $21,550.

In previous posts, we wrote that we expect a slight technical rebound of the crypto market before the fall. The rebound hasn't happened yet. But the price is near the key support zone, and the indicators are almost oversold. Therefore, the probability of a rebound still remains high. However, it is worth considering that a fall below $21,550 may lead to an acceleration of the fall, since below this level there is emptiness up to $18,600.

Now you can try to open a couple of trades with stops to try to catch a possible upward rebound before continuing the fall. We have already opened several such deals and will most likely open a couple more. Stops are small, so combined with proper risk management, in the event of a negative scenario, losses will be low.

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