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During yesterday’s trading session, the value of Bitcoin fell below $40,000, which led to the appearance of corrective buying, which often occurs after breaking the “round” price level. The resulting rebound made it possible to keep the quotes on the inclined support line of the growing trend that has been developing since the beginning of February.
The last bit of negative news for Bitcoin this week came out on Tuesday in the form of US inflation.
The indicator set a new 40-year consumer news growth record, but slowed down from the previous month. Today and tomorrow, the main attention of traders will be attracted by three meetings of the Central Banks, the key of which will be the decision of the European Central Bank on monetary policy.
Rising inflation is a common problem for developed countries, forcing them to raise the rate and reduce measures to support the economy. A cycle of tightening monetary policy measures from developed countries and the European Union will weaken the dollar, which will give Bitcoin a chance to rebound.
It will be easy for the bulls to keep this local trend until the end of the week. Thursday will be the last trading day in the US, with markets closing for Holy Week on Friday. This will lead to a decrease in liquidity and the resistance of the bears will not turn into a continuation of the negative trend.
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