When the talks of a new crypto bull run started to flow, the crypto leader BITCOIN could not hold the crucial $30k and fell nearly 5%, marking a new seven-day low of $28,520.
So, let’s hop along and find why bitcoin crashed and what’s next in store for Bitcoin!
The Rise in 2023
Bitcoin, the world’s largest and most popular cryptocurrency, has been on a remarkable rally in 2023, surging by nearly 80% since the start of the year and breaking above the crucial $30,000 level in 10 months.
One of the main drivers of Bitcoin’s rally is the expectation that the U.S. Federal Reserve will pause its interest rate hikes in 2023 amid signs of slowing economic growth and rising inflation. Instead, the Fed has raised its benchmark rate four times in 2022, from 0.25% to 1%, to normalize its monetary policy and curb inflationary pressures. However, this has also increased the borrowing costs for businesses and consumers and dampened the demand for riskier assets such as stocks and cryptocurrencies.
Reasons for fall
According to our research, these could be the main reasons for bitcoin sell-off:
- Huge dump order on Binance, just before the sell-off. A well-known crypto Twitter trader with the handle @52kskew noted that someone sold 16,000 bitcoin, worth more than $467 million at current prices, before the price drop, which may have triggered the long squeeze.
- Market sentiment may have been affected by the inflation figure of over 10% in March.
- Crypto traders were probably scared by the oversight hearing that Gary Gensler, the SEC Chair, attended on April 18 in front of the United States House Financial Services Committee. Gensler needed to clearly answer whether Ethereum was a security or commodity, even though committee members asked him several times.
Next Step for Bitcoin
Currently BTC price stands at $28,980 and market cap is worth $559 billion with a 24h trading volume of $26 billion. Bitcoin has a key support at $28,500 level and seems to have taken a reversal from there, marking a low of $28,520 and rising to the current level. Let’s have a look at the chart to analyze whether a big reversal or more downward movement is yet to come?
Always remember there is a rule of the market buy the fear and sell the greed.
Bat pattern in formation, reversal is expected from the 28171 or the order block of 27973.
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