The BTC to GBP price is in a consolidation mode as investors assess the state of the crypto market. Bitcoin price is trading at £16,580, which is about 15% above the lowest level this year. It has fallen by more than 67% from its highest level in November last year. Other coins like Ethereum, XRP, and ADA have been in a tight range.
Bitcoin has been in a strong bearish trend in the past few months as investors worry about the state of the crypto industry. The main concern is that the hawkish Fed will have a negative impact on risky assets like stocks and cryptocurrencies. In a statement on Wednesday, the Fed Chair confirmed that the bank will continue hiking interest rates in the coming months. He also warned that these rate hikes will likely lead to a recession.
The BTC to GBP pair has also retreated because of the actions by the Bank of England. Like the Fed, the BOE has embraced a more hawkish tone recently. It has raised interest rates five times since December and warned that the situation will continue. The latest strong UK consumer inflation data pointed to more hikes.
The Bitcoin price has also dropped because of the falling demand. Historically, Bitcoin tends to attract more demand when its price is rising.
BTC to GBP forecast
The daily chart shows that the Bitcoin to pound pair crashed to a low of £14,436 during the weekend. This price was notable since it was along the second support of the Woodies pivot pount. Since then, it has attempted to recover but found resistance at £17,685. It also remains below the 25-day and 50-day moving averages.
Therefore, the outlook for the BTC/GBP is still bearish, with the next key support being at 14,500. This view will become invalid if the price moves above this week’s high of 17,636.
