Following a boisterous and volatile deleveraging week, Bitcoin has begun to consolidate in the $48,000 to $50,000 range.

Bitcoin continues to remain on its 200D moving average which also serves as a critical support level. The next major support can be found near $42,700. The next major resistance levels are at $50,500 and $53,500.

The asset has surged to the upper portion of its regression band which could drive a push to the aforementioned resistance levels (see chart below).

Bitcoin moved higher following a 6.8% CPI print and the Federal Reserve’s decision to accelerate stimulate withdrawal. The asset moved closely with global equity markets, suggesting Bitcoin is still caught between a store-of-value and risk-asset.
Bitcoin has closely tracked the US 10-year Treasury Yields over the past year. The tight correlation was also apparent over the past three weeks as yields declined from 1.64% to 1.43%, partially explaining the weakness seen in crypto markets.

Retail investors have ramped up exposure to Bitcoin over the last month. See “Quantitative Analysis” for an in-depth breakdown.