For the third time in a row, the Federal Reserve, on September 21, Starch Interest rates are 75 basis points (0.75 percentage points).
The broader financial markets immediately fell after the announcement as share prices fell.
“Before Powell” vs “After Powell” pic.twitter.com/1QwlBvAPgR
– Unusual whale (unusual_whales) September 21 2022
Not left out, the cryptocurrency market has also been affected. After the hardcore movement, the price of the leading currency, Bitcoin [BTC]And the It immediately slipped below the $19,000 price range, then bounced a bit after that.
It’s not over yet
According to data from CoinMarketCapSince slipping below $19,000 on Wednesday (September 21), the bitcoin price has since risen by about 5%. At the time of publication, the coin was exchanged for $1,9342.38.
Although it appears to be on an upward trajectory, reports from cryptocurrency analytics platform CryotoQuant indicate that more problems lie ahead for Coin King.
according to CryptoQuantThe past few weeks have been marked by a surge in bitcoin inflows to exchanges. It’s cliched that a rise in this metric is an indication of rising short-term selling pressure for an asset. As CryptoQuant has confirmed, this growth in BTC flow to exchanges has been “exerting selling pressure” on the largest cryptocurrency.
Furthermore, the cryptocurrency analytics platform notes that hourly BTC funding rates are significantly negative. Accordingly, this was another indication that Bitcoin traders “BTC in the derivatives markets were ready to sell short.”
It is still trading at the $19,000 price level and suffering an 11% drop in volume since the Fed’s announcement on Wednesday, according to CryptoQuant analyst Tariq Dabeel, opened That in order to register any significant rise in the price of the leading currency, investors may have to wait a little longer. According to Dabeel, the leading currency “still needs time to recover.”
BEFORE YOU BUY DIP
A look at BTC’s Adjusted Output Profit Ratio (ASOPR) reveals that the current bearish cycle (which lasted more than 185 days) has so far been marked by many BTC investors selling at a loss.
According to a CryptoQuant analyst, Information TechnologyIn previous bear cycles, ASOPR acts as resistance. Every time the price of BTC goes up and the ASOPR hits one value (indicating that more investors were selling at a profit), a “very strong rejection” usually follows.
IT Tech has found that ASOPR is acting as a significant resistance to BTC in the current bear market. As a result, a strong rejection may follow if the ASOPR eventually records a single value.