Bitcoin's correction has been swift, breaking down cleanly through 30k and finding support ~27k.
Strong rejection on 6hr chart at 20 EMA (approx 31K)
Expecting some sideways action and retest of that support given the rapid connection of the crypto total market cap and broader economic headwinds.
CPI (consumer inflation) remains extremely high, it fell within expectations (finally). Unfortunately PPI (producer inflation) came in higher than expected and increased 11% year over year.
The Fed's approach with another 50 bps rate hike is imminent in June as they look at lagging economic indicators that reflect a "healthy" economy with low unemployment.
MACD reflecting bullish divergence, which is likely setting up a bull trap, as market bearish fundamentals remain firmly in place.
While a relief rally is likely following the 26.8k test, the markets are not reversing so long as the Fed remains hawkish as it attempts to rein inflation in.
Price action tending to move in 3k chunks, so expecting a bounce from 27K back to 33K seems likely. If BTC continues its bear market rally past 33K, look for probable rejection at 36k.