Bitcoin (BTC) Price Is Crashing, Is This The End Of A Bullish Era?

After almost a month of continuous bullish trends, Bitcoin (BTC) has been experiencing downturns.

The world’s largest cryptocurrency recently witnessed a huge drop from its new all-time high of $73,803.25 to a one-week low of $66.629. Bitcoin’s sudden dip of over 5% shows massive volatility in the crypto market.

Despite the minor dips, Bitcoin (BTC) has kept a positive trajectory in recent weeks. Particularly the increasing demand for the spot Bitcoin ETF, driven by the remarkable trading volumes and inflows and the upcoming Bitcoin halving event has drawn the Bitcoin (BTC) price to reach this massive milestone. 

Nevertheless, the recent decline in Bitcoin’s (BTC) price triggered concerns about the volatility of the crypto market. The sudden drop in BTC also suggests a lesser possibility of the Federal Reserve cutting interest rates in June 2024.

According to recent reports, the Fed’s decision to cut interest rates in June — considering the opinions of most economists — data from the CME FedWatch tool indicates a decrease in the possibility of the rate cut from 74% to 60% following the decline in BTC. 

Meanwhile, as previously predicted by an analyst, Bitcoin (BTC) could enter a cooling period following the rapid surge last month. 

As of this writing, Bitcoin (BTC) is down by 7.66% trading at $67,365.30 with a 24-hour trading volume of $83.75 billion. Bitcoin’s total market cap also went down to $1.3 trillion from $1.4 trillion.

Henrik Zeber, a Swissblock analyst, warns of a concerning negative divergence between Bitcoin’s price, which surged to a new ATH of $73,750, and the decreasing RSI. This divergence suggests a possible price drop to around $58,000 to $59,000, marking a correction of approximately 20% from its current price.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

Related Articles

Metaplanet Flips El Salvador—6,796 BTC on $126.7M Buy

1 day ago

Save

Ripple: XRP turns pale as liquidity shift Bitcoin, Ethereum, Solana

1 day ago

Save

Bitcoin Price Eyes $135K as US-China Trade Talks Fuel Bullish Surge

2 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments