Bitcoin has fallen below the key level at 60k levels, under the negative risk sentiment as we approach the Federal Open Market Committee's interest rate decision later in the day.
We expect the currency to continue to decline to target the next support around the levels of 52-50 thousand dollars near the uptrend levels on the Daily time frame.
The recent hawkish Fed rhetoric, hot US data, rising Treasury bond yields and hawkish market pricing limited further cryptocurrency gains.
The US ECI report released yesterday also showed that the Fed may need to increase its tone if it wants to achieve the 2% target sustainably within a reasonable time frame.
The market needs some pullback in inflation data along with resilient growth to keep bitcoin prices rising, but even then bitcoin may remain in a downtrend.
