Bitcoin, after reaching a peak of $28,566 on Monday, experienced a correction and faced the threat of further declines on Wednesday. Here are the key factors and technical levels to watch for Bitcoin:
Key Factors:
Global Risk Aversion: Bitcoin's correction coincided with a wave of risk aversion in global markets. Declining stock market indices and uncertainty about the Federal Reserve's stance on interest rate hikes contributed to this risk-off sentiment.
Doubts About Fed's Rate Hikes: Investors are beginning to doubt the Federal Reserve's commitment to completing interest rate hikes, given strong economic data. The August JOLTS report, which showed more job openings than expected, raised expectations of a potential rate hike.
Rising Dollar: The increased likelihood of the Federal Reserve raising interest rates boosted the dollar, which can have a negative impact on risk assets like Bitcoin.
Technical Levels to Watch:
Resistance Levels: Bitcoin faces a key resistance area that includes the $28,000 threshold, the 200-day moving average (also at $28,000), the 100-day moving average ($28,190), and the recent weekend high around $28,570.
Upward Targets: If Bitcoin surpasses this resistance area, the next upward targets are $29,000 and $30,000.
Support Levels: Immediate support for Bitcoin is around $27,000, followed by $26,000.
Investors and traders are closely monitoring these technical levels and key factors to gauge Bitcoin's future price movements amid evolving market conditions and central bank policy expectations.
