Yesterday seemed like a perfect bullish storm for Bitcoin (BTC).

The Fed was more dovish than expected. It said rate hikes were basically over and it set a timetable for ending the process of shrinking their balance sheet. Said plainly, it means the Fed plans to stop draining money out of the banking system.

This created a decline in the dollar (as more dollar’s will eventually be in the system). The stock market went up because they love “easy money.”

So adding all this up, Bitcoin (BTC) should have gone up 10 percent. Instead, it moved up enough to levels where short sellers were waiting. Once their order were filled, the shorts then drove Bitcoin (BTC) below the bottom of bearish rising triangle (Figure 1). The next levels of support below are $3,350 and $3,258 (Figure 2).

 Figure 1  Figure 2

The one positive item to remember is that Bitcoin (BTC) may be doing a correction in time rather than price. That’s a fancy way of saying Bitcoin (BTC) is boring people to tears before eventually making its next move. The Wyckoff bottoming scenario seems to still be in place. (Figure 3).

 Figure 3

Bottom Line: Even through the market seems boring, the Crypto.IQ Trading Desk is making money trading the $300 range that Bitcoin (BTC) seems stuck in.

Join me as I watch the desk do its work.