Investors have grappled with the challenge of turning a profit in the cryptocurrency market over the past three months. However, the recent price momentum of Bitcoin observed yesterday has raised concerns that it may potentially ignite further turbulence in the forthcoming trading session.
Amidst another volatile week for the crypto industry following SEC crackdown on crypto exchanges in US, the price of Bitcoin has experienced a significant drop, slipping below the $25,000 threshold. This is the first time it has reached such lows since March 17. The decline in Bitcoin’s value can be attributed to a recent hawkish announcement made by the Federal Reserve.
Approximately three hours subsequent to the Federal Reserve’s announcement of a halt in interest rate hikes, there was a notable and abrupt decline in the price. This decision comes after a fifteen-month-long series of rate increases implemented by the Federal Reserve to address the escalating issue of inflation.
Bitcoin’s 1000-point losses: Recovery expected today?
During the early hours of Thursday, Bitcoin experienced a notable decrease, declining by almost 3.7% from $25,870 to $24,819 within a span of just one hour, as reported by the trading view. However, it is worth noting that as of the time of writing, Bitcoin (BTC) has managed a recovery of some of its losses and is currently maintaining a position slightly above the $25,000 mark.
Although Bitcoin has made a modest rebound from its three-month low of $24,819, it is important to note that the ADX indicator on the hourly chart is showing an upward trend, currently reaching the 43 range. This indicates a potential for further price declines if buyers are unable to sustain the $25,000 zone.
Based on the data provided by CoinMarketCap, it has been observed that bears in the market have initiated new selling positions, coinciding with a significant surge in trading volume. Over the past 24 hours, the trading volume has increased by 16%, amounting to a substantial $15 billion.
When analyzing the daily price scale, it is evident that market sellers have successfully broken down the falling wedge pattern. This has consequently led to Bitcoin’s price trading below the 20, 50, and 100-day simple moving averages. Currently, the 200-SMA remains as the last crucial point to observe for any potential shift in the prevailing trend.
During the intense selling pressure, the bears have encountered numerous resistance levels, whereas the bulls have limited key support levels to rely on, notably the $24,000 mark. Furthermore, the Relative Strength Index (RSI) is consistently declining toward the oversold zone, presently residing within the 24-range, indicating a bearish sentiment.
Also Read: SEC Lawsuits Cause Massive Price Drops in Bitcoin; Eyes 25k
