Crypto markets are falling after interest rate decisions
The negative effects of the decision to increase interest rates from three central banks this week continue.
We are getting ready to close a “Central Bank” week where data flow and developments are extremely intense. After the FED, which increased interest rates by 50 basis points on Wednesday, the negative reflection of President Powell's rhetoric continues in the markets. Yesterday, US stock indices fell between 2% and 3%. The three-day decline reached 5%. Sales continued worldwide.
Crypto markets are falling after interest rate decisions
In addition, the European Central Bank and the Bank of England also announced their interest rate decisions this week. As expected, all three major central banks used their rate decisions as 50 basis points increase. The European Central Bank's 2023 projections updated its inflation forecast upwards and its growth forecasts downwards, increasing the losses. European stock markets also ended the day with a decrease of between 2% and 4%. The cryptocurrency market was also affected by the declines. Bitcoin, which saw $18,350 on the day the FED interest rate decision was announced, started to price in the $17,400 region this morning.
16 December Bitcoin Technical Analysis
Bitcoin, which rose to $ 18,300 levels on Wednesday evening, retreated to $ 17,400 with the harsh messages of FED Chairman Powell. However, the first level to be reached for Bitcoin, which has not lost the upward trend it has formed for about a month and continues to price above this, is $ 17,775, which corresponds to Fibonacci 0.236. Below, $17,100, which coincides with the 50-day moving average, is located at the initial support level. Then we can say that there is the $17,000 zone, which has been acting as a support and occasionally resistance for a long time.
Unlike the general pricing of the market, Litecoin, which made its own pricing after the FTX crisis and rose above its previous levels, was stuck between $70 - $80 for a while. Litecoin, which rose to the $80 level on Tuesday but was rejected from this region, seems to have retreated to the $71 support. Litecoin, which is currently priced at $72, may experience another rise and target the $80 level again, with the support it receives from this region and also from its 50-day moving average.
