Bitcoin has traded slightly lower today, registering a drop of 2%. The 200d moving average at $45,961 is sitting just below the upward trend line at $46,500. This would be the area we would expect buying interest to prevent further declines. Should we not reach that far before returning to $50,000, then we can assume the rally is back on.
Investors, now addicted to the support from the Fed, continued to sell risk assets as the Fed minutes hinted at possibly reducing their bond purchase program, which would then allow rates to rise further.
In my last briefing, I mentioned that things felt supported across traditional markets. As a sober reminder that things can change quickly, investors turned risk-off yesterday.