Why did BTC breakdown?

22 Oca 2022

BTC has been drawing a falling wedge for the past few weeks on declining volume and looked really good to bounce. It was a really good looking setup but failed and broke below support. The stock market is the main culprit for this failure. Crypto and Stocks have been correlated with one another. The Netflix earnings and announcement of raising interest rates has been too much and pushed the SPX below major support, dragging crypto with it. For the bleeding to stop on crypto, we are going to need a healthy SPX recovery. I think with lockdowns ending, that will be a good start to a recovery this year but still need to wait on Powell remarks for the year(QE). Earnings next week need to be good as well to avoid lower prices in the near future