Key Trends as Markets Seem Fed Up

Key Levels to Watch

As mentioned in Friday’s flash update, “A Week To Remember, A Week To Forget”, Bitcoin put in a miserable week, dropping to $38.4K at the time of writing. In the hours and days that followed, BTC had no mercy as it continued its swan dive to fresh lows. After yet another series of liquidations, Bitcoin dropped another 11% before bouncing off $34K, a key level of support we’d noted in our “Flash Update”.

Bitcoin briefly wicked through $34K, dropping another 5% during the low liquidity weekend trading session on Sunday, before quickly recovering and reclaiming $34K and further flipping green ahead of TradFi’s futures market open.

As we head into the conclusion of this week’s FOMC meeting on Wednesday, Bitcoin is in an interesting position. After a precarious weekend, Bitcoin finds itself within striking distance of the range it broke down from last week. However, a golden rule in trading is that previous resistance becomes support when the associated resistance level (or price) is broken (and vice versa). In this case, we have broken down through some key support, so we’d expect these levels to act as resistance as pric