Bitcoin (BTC) prices dipped below $38,500 as the crypto market continues to bleed on worries over an economic downturn
Fears of Federal Reserve monetary tightening, bearish technical patterns, and liquidation of long positions drove the BTC price to a six-week low of $38,236 in the previous few hours.
Meanwhile, Ethereum, the second-largest cryptocurrency, has dropped more than 5% in the last 24 hours as the crypto market mood has remained in the “extreme fear” zone.
Bitcoin (BTC) Gains Negative Momentum Amid Uncertainty
The price of Bitcoin (BTC) fell 3.2% to $38,236 on Monday, down more than 20% from its last month’s high of $48,086. Also, the Crypto Fear and Greed Index has moved near to its lowest value of 23, indicating extreme fear.
The price charts, according to technical analysts, are showing further declines. Katie Stockton, the managing partner at Fairlead Strategies, reveals that the Bitcoin price has slipped below its Ichimoku cloud support, with the next support at roughly $27,000 levels.
Moreover, Mark Newton, a technical expert at Fundstrat, expects a drop to $36,300 initially. However, if Bitcoin fails to sustain its current price, it might fall to $32,950.
Therefore, analysts predict that the Bitcoin (BTC) price is expected to drop further as the Federal Reserve plans to raise interest rates by 50 basis points in the coming months amid rising inflation.
Crypto trader Michael van De Poppe predicts Bitcoin could fall if it fails to hold the HTF support level between $37500 and $38,000.w
According to Coinglass data, more than 82% of the long-term positions in major cryptocurrencies have been liquidated in the last 24 hours, which is worth almost $310 million. With Bitcoin and Ethereum having liquidations worth nearly $74 million and $84 million in the last 24 hours. As a result, creating uncertainty in the crypto market.
Bitcoin Price Rallies Slightly on Elon’s Twitter Deal
The price of Bitcoin (BTC) rallies slightly in a few hours, as news of Elon Musk’s possible takeover of Twitter broke as the deal reaches the final stage of negotiations. Currently, the Bitcoin price is trading at $38,863, up more than 1% in an hour. Meanwhile, meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) have jumped more than 8% and 3% in an hour.
If the Twitter acquisition goes through and whales move to buy more Bitcoin, the price of Bitcoin could rise higher. However, a sell-off could occur if the price falls below the support zone at around $37,500.