Bitcoin’s correction has been swift, breaking down cleanly through $30k and finding support ~$27k.

Strong rejection on 6hr chart at 20 EMA (approx $31k)

Expecting some sideways action and retest of that support given the rapid connection of the crypto total market cap and broader economic headwinds.

CPI (consumer inflation ) remains extremely high, it fell within expectations (finally). Unfortunately PPI (producer inflation ) came in higher than expected and increased 11% year over year.

The Fed’s approach with another 50 bps rate hike is imminent in June as they look at lagging economic indicators that reflect a “healthy” economy with low unemployment.

MACD reflecting bullish divergence , which is likely setting up a bull trap, as market bearish fundamentals remain firmly in place.

While a relief rally is likely following the $26.8k test, the markets are not reversing so long as the Fed remains hawkish as it attempts to rein inflation in.

Price action tending to move in $3k chunks, so expecting a bounce from $27k back to $33k seems likely. If BTC continues its bear market rally past $33k, look for probable rejection at $36k.