The price has fallen in four straight days with about a 3% decline in the last 24 hours trading at the current price of $33,697 as of press time.
The Bitcoin market has been in a constant decline since hitting its all-time high of $69,000 late last year. The price has fallen in four straight days with about a 3% decline in the last 24 hours trading at the current price of $33,697 as of press time. This is more than 50% correction from its all-time high. Bitcoin, the biggest cryptocurrency by market cap, is on the verge of trading at a new low since July 2021 if it drops below $32,951. Its current price is the lowest since late January.
This new price point has been a cause for concern as it could trigger a more serious mass sell-off among newbies since this marks the beginning of a new market trend. For some months now, the Bitcoin price had moved to and fro between $46000 and $35,000. This was earlier predicted by analysts after it was found that its three-month rising trend line indicates another price pullback from its all-time high.
The Moving Average Convergence Divergence (MACD) histogram and the Relative Strength Index (RSI) were observed to be biased bearish. TradingView, a chatting platform, predicted that support could be $34,322, and could be broken to rest on another support of $32,933.
The Bitcoin price correction has been linked to the major economic decisions being made by the US government as well as the performance of the stock market. Nasdaq Composite (INDEXNASDAQ: .IXIC) lost 5% of its value and Dow Jones Industrial Average (INDEXDJX: .DJI) also lost over 1,000 points, the worst single-day pullback since 2020.
The recent condition in the US job market has raised concerns that the Federal Reserve could tighten monetary conditions faster. According to the US Labor Department, the employment market was very tight last month. There is a concern that wages may see a considerable increase as more employers compete for workers to add more pressure to the inflation. The aggressive action expected to be taken by the US Central Bank has also been said to be the reason for the massive sell-off in the Bitcoin and the stock market.
The concern of Bitcoin traders was fuelled after The Terra blockchain’s UST lost its peg during the weekend. Altcoins including ETH, BNB, and SOL have also lost 4% of their value in the last 24 hours.
The struggle of the Bitcoin market as investors are unaware of how long the bearish run would last has not affected its adoption rate in any way. Recently, the Central African Republic became the second country in the world behind El Salvador to make Bitcoin a legal tender. Also, other experts including Antoni Trenchev, CEO of crypto lending firm Nexo, hold onto their prediction that the digital asset would hit $100,000 by the end of the year.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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