Bitcoin Update

At the time of writing, Bitcoin has fallen in price by 5.95% since the beginning of the week, to $39.650. Nothing has changed in the last week. Bitcoin synchronously followed the US S&P 500 and Nasdaq indices. The positive correlation remains high (0.94 over the last 30 days).

On Monday, April 11, trading began at $42,158. The main US stock markets showed a downward trend. At the end of the day, all 11 sectors of the S&P 500 closed in the red. The tightening of the Fed's rhetoric has been a major topic for investors this week. Strengthening inflationary pressure in the US increased the likelihood of the Fed's rate hike by 50 basis points at once at the next meeting.

Also, the growth of risky assets, including cryptocurrency, was held back by negative news about the coronavirus. Chinese Shanghai has been paralyzed for two weeks due to the coronavirus outbreak, which negatively affects all exchanges. About 25 million people live on government rations. WHO also added fuel to the fire, warning of the threat of the spread of a new strain of covid - XE. Cases of infection have been recorded in the UK, Japan, Thailand, India, and Israel.

The BTC/USDt pair fell to $39,200 from the first trading day, from which it recovered to $41,561. The weekly high remains at $42,350. On Friday, American stock exchanges did not work because of the national holiday "Good Friday". Against this background, Bitcoin strengthened to $40,870.

Increased volatility in all markets is expected on Monday from early morning after the release of Chinese statistics (5 Turkish time). Also, the focus of market participants will be the speeches of the head of the US Federal Reserve, J. Powell, and the head of the ECB, C. Lagarde (April 21).

In terms of technical analysis, the position of buyers remains very weak. To offset the bearish sentiment, they need to gain a foothold above $42,300 as quickly as possible. This requires support from the stock market - the growth of futures for the S&P 500 and Nasdaq indices from the market opening.

Markets are now twitchy due to expectations of an aggressive US Fed rate hike and balance sheet cuts. The collapse of QE is a negative factor for US stocks and crypto. In this regard, it is not known whether the indices will resume the rally or not.

Bitcoin sellers are targeting the $37,000 level. The cue ball settled over the weekend, so we should expect increased volatility from Monday. If, by some miracle, buyers can return the rate to 41200-41500 and close the week there, then a weekly pinbar will form. In this case, they will have another opportunity to strengthen their positions.