We have seen some intraday spike up in the Crypto market. There was no obvious catalyst for the move native to the cryptocurrency industry, but the Asian stock markets began trading at around the same time. In any case, the massive volatility took its toll on the derivatives markets and the liquidations for the past 24 hours surpassed $200 million, according to data from CoinGlass.
Anyway, such intraday spikes we see as a fake rise, so looking at the intraday chart, it still looks like a correction within a downtrend, so watch out for a bearish resumption ahead of the critical Fed meeting today.
EUR/USD and BTC/USD are connected and in positive correlation since November 2021. If we consider that EUR/USD has room for more weakness within an extended wave (5) to complete wave 5 of (5), BTC/USD could be easily headed lower out of potential bearish wave (4) triangle pattern into wave (5) towards June 2021 lows. All eyes on the Fed meeting later today.