Red is back on the cryptocurrency market, as Bitcoin fell to an all-time low for several months.
Bitcoin’s price has tanked for four consecutive days, breaching the psychological support level of $35,000. BTC’s price will fall to $33,000 if it continues its decline.
CoinGecko says that cryptocurrency’s most popular and biggest by market capitalization fell 4.5 percent over the past 24-hours, breaking a key support level and hitting a low point of $34,405.
CoinMarketCap data shows that Bitcoin’s market capitalization fell to $657billion. This number was over $900 billion as of March 28.
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BTC's price has fallen for the fourth consecutive day, surpassing $35,000. (TechnoPixel)
‘Extreme Fear’ For Bitcoin
BTC currently sells at $34,515. This is down approximately 10% over the week and 40% year-over.
The Bitcoin Fear and Greed Index reached a level of “extreme fear” as a result of a loss of about $6,000 in just a few days, which inevitably caused a significant shift in mindset.
Rick Bensignor of Bensignor Investment Strategies said in a note, “Bitcoin’s failure to hold key support has increased the likelihood of a severe decline.”
Bitcoin is following the same downward trend as equities, which means that investors from all asset classes are reacting to any indications of interest rate rises. In the past 24 hours, the market for cryptocurrencies as a whole has fallen by 4.4%.
BTC market capital at $638 billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
No ‘Counter-Trend’ Indicators
Katie Stockton, managing partner at Fairlead Strategies, wrote in a note, “Bitcoin currently has no counter-trend indications, but the equities market appears primed for a comeback next week, which we hope will carry over to cryptocurrencies.”
The majority of Bitcoin’s loss occurred after the Federal Reserve raised the Federal Funds interest rate by 0.50 percentage points, which triggered a stock market selloff and effectively promised two more 0.50 percentage point increases.
A CoinShares report shows that institutional investors sold Bitcoin exchange-traded funds more quickly than one week ago. Bitcoin outflows in the week prior totalled $133million, which is the largest figure since June 2013.
Bitcoin will drop to $30,000. (MoneyWeek)
Analyst predicts a drop to $30K
Carter Braxton Worth, the founder of Worth Charting, predicts that Bitcoin’s price will drop by another 13% to $30,000.
Alternative coins, like red, are also in trouble. With a decline of 4.5 per cent daily, Ethereum is leading this trend.
Binance Coin lost an equivalent percentage, and currently trades below $360. Avalanche and Cardano are also in red.
Last week, the head of research at IntoTheBlock, Lucas Outumuro, told Fortune, “Until the market begins to look past the influence of the Fed’s quantitative tightening and rate hikes, I believe it impossible for Bitcoin to develop a broader uptrend.”
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Featured Image: Chart from TradingView.com