According to a recent Bloomberg story, the price of Bitcoin might plummet to as low as $26,000 if a “bearish flag” statistical pattern continues to play out. On Monday, the world’s biggest virtual currency had a difficult start to the week, falling beneath $40,000 for the very first time since May. As per Coinglass, $439 million worth of digital currencies was liquidated within the last a day, with long holdings contributing to 88.03% of the total wipeout. Bitcoin futures traders gave up $160.19 million in BTC.
The Federal Reserve’s aggressive reversal has rekindled the dollar boom while also exerting pressure on asset prices notably Bitcoin. According to the US dollar index, the greenback’s strength against foreign currency recently surpassed 100, breaking a two-year high. The core Dow Jones Industrial Average index fell 1.89% late Monday, putting the US stock market in the red.
The Downward Trend Is Projected To Continue
Bitcoin could now be on pace to test a key support value of roughly $37,500, according to the research. Failure to find some sort of footing here might be terrible for bulls. Bitcoin is currently trading at $40,121, failing to recover following a spate of significant losses. It’s dropped 41.81% from its all-time high.
According to Jeffrey Halley of Oanda, the largest cryptocurrency is trading inside the defined range, which has a bottom limit of $36,500. If Bitcoin falls below that level, it will almost certainly lose a lot of money. According to Halley, if Bitcoin rises over the upper barrier of $47,500, a record new high could be within reach. Likewise, Ethereum lost 14% of its value, falling below $3,000 for the very first occasion since March 23. It’s part of a broader pattern, as crypto markets plummeted 8.5% in 24 hours to $1.84 trillion in market capitalization, according to CoinMarketCap.
Mobikwik Leaves Traders Stranded
Tax implementation, combined with MobiKwik’s withdrawal of services spanning marketplaces from April 1 due to ambiguous legislation, has handed crypto trading a double punch. As per data supplied by cryptocurrency market researcher CREBACO, transactions have decreased by some 50% on aggregate amongst cryptocurrency exchanges since last week. WazirX had a 72% decline in volume, as CoinDCX and Zebpay witnessed 52% and 59% drops, respectively. Buyers are now being compelled to use methods of payment such as bank transfers as a result of the withdrawal of the MobiKwik wallet, which has been one of the more popular ways of payment for purchasing cryptos across multiple marketplaces. Exchanges were also using it as their only wallet.
The Government Looking At Possible Damage Control
The Biden administration is attempting to minimize the impact of the newest inflation statistics, which seems expected to reveal that the living costs surged in March, fueling worries of a recession.
On Monday, White House press secretary Jen Psaki told journalists that “we expect March CPI headline inflation to be unusually strong owing to [Russian President Vladimir] Putin’s price hike.” “We predict a significant divergence between core and headline inflation, reflecting global disruptions in energy and food markets [due to Russia’s invasion of Ukraine],” says the report.