One analyst is raising the alarm as Bitcoin (BTC) bulls work hard to maintain the New Year’s rise.
The start of a stunning rebound from the depths of December has so far been observed in 2023.
Markets have been reenergized by BTC’s price activity, which has increased by +31% YTD.
Possible rollover for Bitcoin (BTC)
The leading analyst made his argument that risk assets aren’t yet safe by posting his thesis on Twitter.
McGlone’s prognosis, as he stated, is driven by worries about the macro attitude for risky assets like cryptocurrency.
According to McGlone, the two main risk asset alternatives for the first quarter are a bear market rebound or bottoming.
The benchmark cryptocurrency Bitcoin is retreating from resistance as the worst headwinds continue. Bitcoin may be rolling over.
The price movement of Bitcoin in February has been difficult, in fact. The price dropped to nearby support at $21,750 after retracing from strong resistance above $24,000.
Bulls are attempting to consolidate their gains here, but the situation isn’t promising.
Could the Fed explain the resistance to Bitcoin in February?
According to McGlone’s study, the US Federal Reserve’s persistent pressure and headwinds are to blame for this price movement.
The Federal Futures Funds reported rising rate expectations in the first quarter, but the primary distinction is that markets are down from the previous year.
He continued, “Don’t go up against the Fed.
Since the end of 2021, the market has been gripped by worries of rate increases, albeit so far, everything has remained stable.
However, the unexpectedly dovish stance taken by Jerome Powell has so far in 2023 soothed the markets.
This has given Bitcoin the much-needed confidence boost it required, which has been aided by a bullish S&P 500.
What is evident is that Bitcoin is now headed toward its 200-day MA. Things will become messy if it doesn’t quickly bounce off the support.
The information released by the Fed today may influence prices.
Markets have already factored in a core YoY estimate of 5.5% and a YoY estimate of 6.2%.