The cryptocurrency market as a whole is once again blanketed in red, with Bitcoin falling to a multi-month low.
Bitcoin’s price has tanked for four consecutive days, breaching the psychological support level of $35,000. The probable freefall will drag BTC down to the $33,000 support level if sellers maintain this decline.
According to CoinGecko, the most popular and largest cryptocurrency by market capitalization lost 4.5 percent during the past 24 hours, breaching a crucial support level and posting a daily low of $34,405.
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The price of BTC has crashed for four straight days, breaking past the psychological support level of $35,000. (TechnoPixel)
‘Extreme Fear’ For Bitcoin
BTC is presently selling at approximately $34,515, down roughly 10% in the past week and down 40% year-to-date.
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 has mainly followed the downward trend of equities markets as investors across asset classes react to indications of future interest rate hikes. In the past 24 hours, the market for cryptocurrencies as a whole has fallen by 4.4%.
BTC total market cap at $638 billion on the daily chart | 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.
Institutional investors began selling Bitcoin exchange-traded funds more than a week ago, according to a CoinShares report. Prior week Bitcoin outflows totaled $133 million, the biggest figure since June last year.
Bitcoin is predicted to 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.
As previously indicated, alternative coins are also suffering, with red dominating virtually all charts. Ethereum leads this negative trend with a daily decline of 4.5 percent.
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 Live Science, chart from TradingView.com