Crypto in correction move 📉 Bitcoin falls below 29,5000 USD

The largest cryptocurrency was unable to sustain the bullish momentum and failed to hold longer above $30,000 where stronger supply was once again triggered. The declines come as markets began to see a chance for more Fed rate hikes as Waller and Bullard of the Fed cooled recent optimism over the May pivot. Also, comments from the Fed's Raphael Bostic reinforced the chance of a 25 bp rate hike in May and a long pause of no rate changes thereafter. Additionally, Morgan Stanley's CEO conveyed that he does not expect a single rate cut this year. A strengthening US dollar does not favor bulls on Bitcoin.

• The wave of risk aversion in stock markets and a correction in Asian markets has put the crypto industry under bearish pressure;
• The liquidity of the Bitcoin and Ethereum market after the departure of the driving institutions Signature Bank and Silvergate Capital is still shallow, which could facilitate sudden spikes in volatility;
• In addition, investors are scrutinizing yesterday's statements by Gary Gensler, head of the SEC, who refused to comment on whether Ethereum is a security - the US regulations climate is still 'unknown';
• The Financial Services Committee hearing in the US Congress is also underway today, and concerns the so-called stablecoin market.

Smaller cryptocurrency projects so-called altcoins are leading the crypto market declines. Source: xStation5

BITCOIN, D1 interval. The major cryptocurrency has once again been pushed off the $30,000 level signaling a possible backdrop for a larger correction of the huge upward movement. Should the declines deepen, the 23.6 Fibonacci retracement of the upward wave, which began in November 2022, at $27,400, and the SMA100 (black line), which may overlap with the 38.2 Fibo at the psychological zone of $25,000, may prove to be important levels. Source: xStation5