The US is Pressing Bitcoin from 2 Sides: According to QCP, Price Will Drop Here if Support Breaks - Coin Bulletin

The sale of Silk Road Bitcoins by the US government and the hawkish stance of the Fed have put pressure on the price of Bitcoin at the critical support level of $92,000.

According to information reported by QCP Capital, Bitcoin (BTC) rose to 95,200 dollars last night after successfully testing the critical support at the 92,500 dollar level.

However, following reports that the US government has sold the Bitcoins seized from Silk Road, the early hours of the Asian markets saw Bitcoin once again heading towards a downward trend.

Macroeconomic uncertainties continue to affect the crypto markets. The minutes of the US Federal Reserve (FED) published last night revealed a decision to slow down the pace of interest rate cuts, indicating increased inflation risks.

In addition, the ADP employment report showed a slowdown in hiring and wage increases in the private sector. This data contradicted the strong labor market outlook of the previous JOLTS labor market report.

In the options market, an increase in volatility is observed in the volatility curve. Especially, a 1.5 vol increase is recorded in the March-June maturities, while the difference between June-December has risen above 1 vol. It is expected that the selling pressure will continue in the short-term options in the coming days.

Consolidation and possible decline scenario for Bitcoin

On a day when the US markets are closed, Bitcoin is expected to consolidate between $92,000 and $95,000. However, a break below $92,000 could bring the **$90,000 level back into focus.

QCP Capital notes that Bitcoin price will follow a volatile course this week and that the pressure of macroeconomic data on markets will continue. In particular, it is thought that BTC sales by the US government and the hawkish stance of the Fed could increase volatility in the crypto markets.