Investing.com - Bitcoin fell sharply during the day yesterday, breaking several key thresholds, and continued to fall in the evening after the Fed minutes confirmed the willingness to adopt an increasingly hawkish policy.
BTC/USD dropped to a low of $42,800 on Wednesday night, a 6% drop from yesterday's high of $45,500.
The minutes of the Federal Reserve's March meeting, where governors discussed raising interest rates in half-point increments, revealed that the Fed plans to accelerate its bond sales and reinforced market expectations for a 0.5% rate increase at the next Fed meeting.
Last week Fed Chairman Jerome Powell raised the possibility of a half-point hike to curb inflation, which at nearly 8% is at its highest level in four decades and could potentially rise due to the conflict in Ukraine, which is sabotaging energy prices and global supply chains.
Technical thresholds to consider in Bitcoin
From a chart analysis point of view, it should be remembered that Bitcoin broke below an important support zone of around $45,000 yesterday. Now the next support area will be the $42,000 threshold and the 100-day moving average currently at $41,740.
A break below this key support area would be a major bearish signal and would put the psychological threshold of $40,000 in play.
On the upside, the $45,000 area is now to be considered as immediate resistance, before the 200-day moving average at $48,250, then the psychological threshold of $50,000 and a chart resistance at $52,000.