Bitcoin trader keeps $40.8K BTC price target amid warning over risk asset 'pain trade'

2 years ago

Bitcoin (BTC) consolidated beneath $40,000 connected May 5 aft U.S. economical argumentation excitement saw a spike to one-week highs.

Fed sparks small crypto reaction

Data from Cointelegraph Markets Pro and TradingView confirmed an overnight highest of $40,050 connected Bitstamp pursuing comments from the Federal Reserve and Chair Jerome Powell.

The U.S. cardinal slope had conformed to marketplace expectations with a 0.5% cardinal complaint hike, besides suggesting that akin repetition hikes would follow.

With that, a modest marketplace rally near Bitcoin eerily lacking volatility successful what was a beardown opposition to erstwhile Fed pronouncements connected topics specified arsenic inflation.

While galore expected hazard assets en masse — including crypto — to deflate nether the caller policy, not everyone believed that specified a script would origin investors maximum discomfort.

"With truthful galore radical calling for melt ups and melt downs, possibly the symptom commercialized is to chop sideways successful hazard assets for a agelong time," economist Lyn Alden argued.

Bitcoin circles likewise were not expecting large inclination changes. Ben Lilly, a token economist astatine Jarvis Labs, highlighted debased backing rates connected BTC derivatives markets.

"Market saw immoderate alleviation with Powell's comments. But volition it proceed for the crypto market? To start, backing rates person been antagonistic for a agelong play of time. This tends to hap astatine scope lows," helium wrote successful a bid of tweets.

"A bully operation for immoderate upward momentum that begins here."

Lilly added, however, that a deficiency of accumulation from whales astatine existent terms levels was "not what we hoped to see."

"Max pain" for Bitcoin inactive acold away

Focusing connected little timeframes, fashionable trader Crypto Ed held retired for a caller propulsion supra the $40,000 people connected May 5.

For him, BTC/USD was successful enactment to deed $40,800, and portion determination were "plenty of reasons" to discount a much important climb, it was inactive an option.

2/2
No, this is not a bold telephone for $43.5k successful 1 spell and earlier extremity of the week.
Will explicate the illustration supra successful today's video.
This is the astir perfect script portion determination are plentifulness of reasons to deliberation this is impossible.
Will effort to bash YT earlier 10am, different aboriginal afternoon

— Ed_NL (@Crypto_Ed_NL) May 5, 2022

In presumption of BTC terms capitulation scenarios, meanwhile, on-chain monitoring assets Whalemap repeated its previous assertion that the country betwixt $25,000 and $27,000 would represent "max pain" for Bitcoin hodlers.

"A batch of liquidity and halt losses are stacked there," it explained arsenic portion of Twitter comments.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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