Bitcoin made another attempt to rise above 50 DMA and rose to ~$40k yesterday. However, the cryptocurrency was rejected at those levels. At the moment Bitcoin is down 2.5%. Volume was quite low yesterday as well.
Looking at the Volume and Price, momentum is clearly fading. BTC is making lower highs continuously and volume is also forming a declining trend. Not good signs at all. The low volume is a sign that investors are waiting for more clarity from the Fed and also the developments in Ukraine. Any aggressive stance from the Fed can send Bitcoin below its near-term support of $38k.
In terms of other top cryptocurrencies, Luna continues to outperform. Over the past 2 day, Luna performed better than BTC.
LTC, LINK, NEAR, EGLD, and AXS are other notable mentions in the top 50 that showed outperformance. I wish SPS was also showing similar performance as AXS.
The EU voted down a proposal to ban PoW mining. Not sure how that ban impacts Bitcoin but it is in the news. Most of the industry is shifting to renewable energy because of institutional focus on ESG. The transition was already happening and even if EU had banned PoW mining, it's not as if they were ready to ban Bitcoin.
Despite the negative price action, bearish bets on Bitcoin are not increasing. Investors are waiting to see off central bank risk and then take a call. I had mentioned that the meeting will end today in yesterday's post but the 2-day meeting starts today. Most likely, it will be a 25 bps hike. Any over and above could send markets lower.