The BTCUSD pair briefly dipped to the $28,300 zone for the first time in nearly two months before bouncing slightly
Bitcoin has been sliding for the third session in a row on Thursday, staying on the defensive after a failure to hold above the $30,000 psychological level earlier in the month. As the pressure intensified, the BTCUSD pair briefly dipped to the $28,300 zone for the first time in nearly two months before bouncing marginally.
The cryptocurrency market suffers losses along with global stocks these days. Today, investors digest the minutes of the Federal Reserve’s July meeting, which contained a hawkish bias, pointing to potentially higher rates. In particular, the central bank officials said additional tightening may be necessary to bring down inflation. As the Fed dented hopes interest rate hikes are finished, Asian equities followed Wall Street lower on Thursday to hit nine-month lows.
Risk aversion, in turn, propped up the US dollar, pressuring BTC as well. The greenback briefly climbed to 103.60 for the first time since June before retreating marginally. The overall sentiment surrounding the US dollar has been upbeat for more than a month already as the currency is well supported by a combination of higher Treasury yields, robust economic data and still elevated inflation numbers, suggesting the Fed could raise rates further.
As such, the path of least resistance for bitcoin remains to the downside for the time being. The largest cryptocurrency by market capitalization could see a deeper retreat if the $28,300 zone fails to withstand the pressure in the days to come. In case of a bounce, the BTCUSD pair will target the $29,000 mark, followed by a $29,000 intermediate barrier to the $29,700 level, while the key hurdle remains at $30,000 last seen more than a week ago.