🚨Here’s How Low the Bitcoin Bears Could Push the Price🚨
👉All said, those betting that the approval of spot Bitcoin ETFs last week would be a “sell-the-fact” appear to have been vindicated.
👉And if JP Morgan is right, Bitcoin bears are likely to remain in control as sell pressure remains high.
🟢Another factor that could play in the Bitcoin bear’s favor is potential macro headwinds.
Traditional asset investors seem to still be very much betting that Fed interest rate cuts begin as soon as March.
👉US interest rate future markets are still pricing a near 50% chance of a 25-bps rate cut in March, as per the CME’s Fed Watch Tools.
That’s despite recent data not supporting the case for a rate cut that soon, and Fed policymakers saying March would be too soon.
🚨US money markets are likely to be forced into reducing expectations for a March rate cut to zero.
This could support further gains for US yields and the DXY, bolstering the Bitcoin bear case.
So a break below $40,000 looks to very much be on the cards for the weeks ahead.
That could trigger a fresh wave of technical selling given that $40,000 is a key support zone.
The November 2023 highs in the $38,000 area would be the first area targeted by the Bitcoin bears.
But simple chart analysis suggests that a retest of long-term support-turned-resistance at $32,000-$33,000 is a possibility.
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