Thanks Powell! Bitcoin Slides With The General Market During Fallout From Fed Chair's Testimony

Bitcoin BTC/USD was sliding almost 4% lower during Thursday’s 24-hour trading session, for the fourth straight red day in a row.

The move has been mostly in tandem with the S&P 500, which has been pressured lower in the lead-up-to and aftermath of two days of testimony, presented by Federal Reserve chair Jerome Powell in front of congress on Tuesday and Wednesday.

In contrast, spot gold was spiking about 1.2% higher on Thursday, indicating the commodity remains the most likely inflation and recession hedge, an argument opposed by crypto enthusiasts despite Bitcoin having no trading history during a severe economic downturn.

As opposed to gold, which looks to be reversing course from a recent retracement, Bitcoin has been trading in a downtrend since Feb. 21 and looks to be headed lower still over the coming days.

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The Bitcoin Chart: Bitcoin’s most recent lower high within its downtrend was formed on Sunday at $22,654 and the most recent confirmed lower low was printed at the $21,988 mark on March 3. On Thursday, Bitcoin was working to print a bearish Marubozu candlestick, which could indicate lower prices could come again during Friday’s session.

• If Bitcoin bounces up later on Thursday to form a lower wick, the crypto will print a hammer candlestick, however, which could indicate the next lower low has been created and Bitcoin will bounce on Friday. The second most likely scenario is that the crypto trades sideways to form an inside bar, which would lean bearish for continuation over the weekend.
• If Bitcoin continues to trade lower into Friday, the crypto’s relative strength index will plunge below 30%, which could indicate a bounce is on the horizon. When a stock’s or crypto’s RSI drops under that level, it becomes oversold, which can be a buy signal for technical traders.
• Bitcoin has resistance above at $21,313 and $22,729 and support below at $20.545 and $19.915.

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