Bitcoin has continued to experience a near-term pullback this week due to a decline in risk appetite following hawkish comments by Fed Chair Jerome Powell. Additionally, the voluntary liquidation of Silvergate Bank, a major player in cryptocurrency markets, has weighed down the digital currency, marking a setback for wider adoption of cryptocurrencies in the economy.
From a technical perspective, Bitcoin’s rebound from 15452 could have ended at 25242 in February, after being rejected by 25198 resistance. The daily MACD shows a bearish divergence, and the 55 Day EMA was broken this week.
However, confirmation of a near-term reversal would require a firm break of 21357 support. Otherwise, outlook remains neutral. Alternatively, a firm break of 21357 would signal a deeper decline back to the 15452 low.
