Investing.com - Bitcoin is down sharply following last night's Fed meeting, with the cryptocurrency marking an overnight low of $35,745, down from a high near $39,000 just before the Fed's announcements, a decline of around 9%.
In a few hours, the BTC/USD reversed the gains of the previous two days.
With markets falling, many expected the Fed to try to reassure, implying a dovish risk. However, this was not the case, as the FOMC confirmed the high probability of a first rate hike for March.
In addition, at the press conference following the FOMC statement, Fed President Jerome Powell warned that inflation remains above the Fed's long-term objective and that supply chain problems could be more persistent than expected.
This has led to increased risk aversion which has also impacted on equities, as seen yesterday on the US stock markets, and overnight on Asian markets.
Technical thresholds to watch for on Bitcoin
From a chart perspective, the bearish impact of the Fed meeting has realigned Bitcoin with its underlying downtrend, which can be seen on the daily chart as a descending trend line since the November high.
In the short term, the $35,500-800 area should be considered as immediate support, before Monday's low of $33,000 and the major psychological threshold of $30,000. On the upside, a return above $40,000 is the first step to start challenging the cryptocurrency's negative bias.