Bitcoin’s (BTC/USD) price is weakening just before the Federal Open Market Committee (FOMC) minutes. The coin is trading at $45,311, lower than its high last week of over 48,000.
FOMC minutes ahead
Bitcoin has been struggling with the recent happenings dying down in the past few days.
This performance is due to various notices from the bond market. As indicated below, the yield curved has solidly fallen over the past few weeks, causing a curve Inversion for the first time since August 2019.
The yield curve correctly shows worldwide recessions. For example, in August 2019, it inverted, followed by a recession a few months later due to the Pandemic. A similar event happened in 2007 when the 2008 recession followed an inversion. Hence, a recession is possible in either 2022 or 2023.
The performance of the yield curve is majorly due to the Fed’s promise of a hawkish tone in its forthcoming meetings. They have already hiked by 0.25%, and a 0.50% hike is possible in April.
Moreover, the Fed is expected to begin Quantitative tightening (QT) in May. This bounce back is against what the bank has been doing in the past. Its QT programe increased its balance sheet, currently at $9 trillion.
Hence, the above reasons for Bitcoin’s price challenges mirror those of other stocks. Dow Jones and Nasdaq 100 futures have sharply dropped too.
Bitcoin price prediction
The daily chart shows that the BTC price has been in a strong bullish trend in the past few days. In this period, the coin has managed to move above the 61.8% Fibonacci retracement level. It has also risen above the 25-day and 50-day moving averages.
A closer look reveals that it has formed a break and retest pattern by moving to 45,504. Therefore, there is a likelihood that the coin will maintain its bullish trend in the coming days.