Bitcoin is entering a zone of turbulence
Bitcoin (BTC)’s recent moves foreshadowed the worst, and we predicted it for you: the little orange coin was set to drop below the $60,000 mark. A phenomenon that was not long in coming, as the token fell to $56,000 last night.
The incident is tough for investors and the entire market, but it is justified by several elements. The month of April was eminently bearish and left BTC in a downtrend. And that despite the unexpected rise yesterday morning.
Other elements accelerating this phenomenon, the loss of appetite of buyers in the face of faltering prices, but above all the fear of the next FOMC meeting scheduled for today. While the data from the US economy is bad, the Fed risks announcing an extension of interest rate hikes and the collapse of the stock market and commodities, traders prefer to sell their assets before the next disaster.
As for the Bitcoin ETFs of the Hong Kong exchange, they have not yet seen the expected success with $123 million invested, which is an insufficient amount to support BTC. By comparison, their American competitors raked in 4.5 billion on launch day.
To go further: What is a crypto ETF?
Heading for more liquidation tonight?
As BTC is currently in the danger zone, there is little room for improvement. This is mainly because the asset has reached the critical support of $56,000 and cannot go beyond it.
Next night promises to be potentially deadly as markets react to various Fed announcements. Experts are calling for considering Bitcoin to hit $52,000 very soon.
On a more positive note, this is not the first time such a phenomenon has occurred. When we see from a greater distance, we realize that the crash is just a small red spot on the evolution of the token. Some analysts also believe that BTC could start a short push as it has reached key support.
Moral of the story: when Bitcoin wants to run too fast, it is more likely to stumble.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.