Cryptocurrencies, which fell before the FOMC minutes, have yet to recover. So what was the main reason behind this decline? At the time of writing, Bitcoin has dipped below $43,000 and continues to find buyers at $42,850. Bitcoin, which fell to the lowest level of $42,725 during the day, continues its negative outlook.
Cryptocurrency Expert Commentary!
The decline of altcoins as a whole BTC due to withdrawal. Will Bitcoin be able to recover? Support and resistance aside, Decentrader’s Filbfilb says it’s all about the yearly pivot of Bitcoin’s price action. New Research, Bitcoin (BTC) is at a “significant” point and is facing macro forces that could affect it “in the coming months,” he says.
In the latest market update on April 8, Decentererhe urged that more attention be paid to Bitcoin’s “yearly pivot” price. After retesting support at $43,000 twice this month, Bitcoin turned around around $50,000, piercing market confidence. from January 1 BTC price resistance The move below $46,200, which is the opening price for 2022, was quite difficult to hold as it marked the top.
When reviewing the lower levels, $40,000 or less comes to mind. But for the Decentrader, the bull grip is already here.
Cryptocurrency analyst Filbfilb said;
“Bitcoin was rejected from the yearly pivot, a level that has not been broken in any of the last 4-year cycle bear markets. While this is quite possible, it has been a disappointment for the bulls who have injected hops and broken the main support/resistance level around $43,000 per week.”
If the current scenario truly represents a “bear market” phase for BTC/USD, a close above the pivot, especially on higher time frames, would not only be bullish but also historically unusual.
“A break above the yearly pivot would be a break from the 4-year cycle norm and bitcoinIt could indicate that the price is heading for significantly higher prices, but in the short term, the weekly level should be supported by the bulls. This is necessary to avoid going back to consolidation.”
Why did cryptocurrencies fall?
Analysts agree that the US Federal Reserve’s balance sheet cuts will likely put pressure on stocks and risk assets, so Bitcoin will remain under pressure. This is the base of his last drop. Filbfilb says Fed action will be ‘in the next few months’ BTC price He drew attention to these developments, arguing that they could affect the movement.
On the other hand, due to the tension in Ukraine, the Fed’s moves have a multiplier effect on risk assets. Global uncertainty drags risk markets down. Of course, cryptocurrencies come first.
However, how low Bitcoin can go may depend on liquidity catches. Sentiment across derivative funding rates continues to rise despite weakening spot price action, raising the possibility of a notch sell-off to the downside. purseThis week has seen the biggest long sell-offs since January, as shown. Filbfilb wrote that liquidity both above and below the spot price means the potential for a pull in either direction remains high, with the potential upside target still above $50,000.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should trade according to their own research.