After weeks of bulls struggling to get back to control, bears were strong enough to not let go of the charge as the world's largest cryptocurrency, Bitcoin failed to even keep up the price above the $40,000 range.

The tightening of the Fed's rhetoric has been a major topic for investors last week. Strengthening inflationary pressure in the US increased the likelihood of the Fed's rate hike by 50 basis points at once at the next meeting.

In the short-term perspective of Bitcoin,  analysts expressed concern that the rate of the first cryptocurrency could collapse in tandem with traditional financial markets due to the decision of the US Federal Reserve to curtail the monetary stimulus program.

Technical Analysis

On the daily chart, BTC price declined below the upward channel since late January. MA20 and MA30 formed a "death cross". MACD is trending below 0 and the negative histogram is increasing. RSI is also signaling a bearish run. If BTC drops below $38,000, a further plunge to $36,000 mark will occur.