RLinda ! BTCUSD-> Why is bitcoin going down and where?

Bitcoin is declining, at the time of writing the price is 23,000. The drop in the value of the asset followed a downward trend in U.S. stocks, as the SP500 index fell 1.6%, the Dow Jones Industrial Average fell 1.2%, and the Nasdaq Composite weakened 1.6%


-The sharp decline was triggered by the release of data showing that core monthly personal consumption spending rose 0.6% from December to January, exceeding the 0.3% forecast.
-Cleveland Fed President Loretta Mester confirmed Friday morning that while inflation has been easing, the overall rate matters and remains too high.
-As market analyst Jeroen Blokland noted, the odds of a 50 basis point hike in the Fed's target rate just rose to nearly 40% after higher-than-expected core PCE inflation. Previously, the market had expected a 25 basis point hike.
-The odds on the Fed's July target rate are now approaching 9%, which is a concern for investors.


-Short-term uncertainty in the crypto market does not appear to have changed the long-term outlook for institutional investors.
-In the short term, concerns are high because the bitcoin price is directly affected by macroeconomic events, and it is also likely that a potential rate hike at the next FOMC also has some impact on the BTC price
-In the long term, market participants still expect the bitcoin price to rise, due to the fact that a number of large banks are getting interested in digital money settlements.


Technical Analysis:
We can see that although the SP500 index is trying to drag down the bitcoin price, it is not working out as well as we would like. The cryptocurrency flagship is trying to hold itself more stable.
The price is getting into the long zone relative to the strong support level of 19666 and at one point the price renewed its 9-month high to the $25270 mark.
It is worth paying attention to the formation of a reversal pattern relative to the local support zone - the area 21000-21450 and as the formation of a cross between the weekly moving averages MA-200 and MA-50, which denote us a bullish signal for the medium and long term, but at the same time formed a false breakdown of moving averages, which in the long term may indicate lower prices, actually, what the flagman does.

At the moment, from the fundamental analysis point of view, the formation of the pullback to the area of 21500 or even to 20000, but in the long term, as the price is in the perspective plane, there is a chance for the growth to the area of 30000 and above.

Sincerely R. Linda!