The cryptocurrency market as a whole has been covered in red once again, with Bitcoin dropping to its lowest level in several months.
Bitcoin price has fallen for four consecutive days, breaking the $35,000 psychological support level. A possible free fall will lead to a pullback of BTC to the $33,000 support level if the sellers continue this decline.
According to CoinGecko, the most popular and largest cryptocurrency by market capitalization has lost 4.5 percent in the past 24 hours, breaking above a critical support level and hitting a daily low of $34405.
CoinMarketCap data showed that the market capitalization of bitcoin has fallen to $657 billion. As of March 28, this number has exceeded $900 billion.
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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’ of Bitcoin
BTC is currently selling for approximately $34,515, down nearly 10% in the last week and down 40% year-to-date.
The Bitcoin Fear and Greed Index reached a level of “extreme fear” as a result of losing around $6000 in a few days, which inevitably caused a major shift in mentality.
“Bitcoin’s failure to hold key support has increased the potential for a sharp decline,” Rick Bensenor of Bensignor Investment Strategies said in a note.
Bitcoin has essentially followed the downtrend of the stock markets as investors across asset classes react to indications of higher interest rates ahead. In the past 24 hours, the cryptocurrency market as a whole has fallen by 4.4%.
BTC total market cap at $638 billion on the daily chart | Source: TradingView.com
There are no “reverse” indicators.
Katie Stockton, managing partner at Fairlead Strategies, wrote in a note: “Bitcoin currently has no reversals, but the stock market appears set for a comeback next week, which we hope will move to crypto.”
The majority of Bitcoin’s losses occurred after the Federal Reserve raised the federal funds rate by 0.50 percentage points, which sold off the stock market and effectively promised two more increases of 0.50 percentage points.
Institutional investors began selling Bitcoin exchange-traded funds more than a week ago, according to a CoinShares report. Bitcoin outflows last week totaled $133 million, the largest number since June of last year.
Bitcoin is predicted to drop to $30,000. (MoneyWeek)
Analyst expects a drop to $30,000
Carter Braxtonworth, founder of Worth Charting, expects Bitcoin to drop another 13% to $30,000.
As noted earlier, altcoins are also suffering, with red dominating almost all charts. Ethereum is leading this negative trend with a daily decline of 4.5 percent.
Binance Coin has lost a similar percentage and is currently trading at less than $360. In addition, Avalanche, Cardano, Dogecoin, Ripple, Solana, Polkadot, NEAR and Shiba Inu appear in red.
Last week, IntoTheBlock’s head of research, Lucas Outumuro, told Fortune, “Until the market begins to weather the impact of quantitative tightening and Fed rate hikes, I think it’s impossible for Bitcoin to develop a broader uptrend.”
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Featured image Live Science, chart from TradingView.com