Bitcoin (BTC) is currently one of the most valuable cryptocurrencies in the global market and has performed very well in the past few months. However, Bitcoin's recent gains seem to have subsided, falling below the key support level of $30000 in early Thursday trading
Bitcoin (BTC) is currently one of the most valuable cryptocurrencies in the global market and has performed very well in the past few months. However, Bitcoin's recent gains seem to have subsided, falling below the key support level of $30000 in early Thursday trading. Part of the reason for the decline is that the latest inflation data in the UK exceeded market expectations. Normally, high inflation may prompt investors to seek safe haven assets, but there is also a certain degree of uncertainty in risky assets such as Bitcoin. At the same time, the market is also paying attention to possible monetary policy measures taken by the Federal Reserve. If the Federal Reserve decides to raise interest rates, it may lead investors to seek traditional financial assets instead of cryptocurrencies. In addition, the US Securities Regulatory Commission's strengthened regulation of cryptocurrency companies may also have a certain impact on the price of cryptocurrency.
Generally speaking, the fluctuation of Bitcoin prices is influenced by multiple factors, including macroeconomic data, monetary policy, regulatory environment, market sentiment, etc. Investors should closely monitor these factors and adopt prudent investment strategies that fully consider risks. Bitcoin and other cryptocurrency markets are highly volatile and should be treated with caution.
In addition, the second largest cryptocurrency by market value, ETHs, fell more than 5% that day to $1956 in the United States. In addition, other well-known counterfeit currencies, including ETH, DOGE, XRP, and LTC, also experienced a series of losses on the same day. BTT became the biggest winner of the day, increasing by over 8% within 24 hours.
The inflation rate in the UK unexpectedly rose in March and remained at a high of 10%. This increase is mainly due to the increase in food and energy costs, which has brought additional burdens to households. This news indicates that the Bank of England may have to take measures to increase borrowing costs to curb inflation.
According to a report by the Office for National Statistics (ONS), the consumer price inflation (CPI) rate in the UK fell to 10.1% in March from 10.4% in February. Although there has been a decline, it is still higher than the 9.8% predicted by economists surveyed by Reuters and the 9.2% predicted by the Bank of England (BoE) in February. Rising inflation may lead to a decrease in investor demand for Bitcoin (BTC), as in times of economic uncertainty, some investors may be more willing to seek more stable traditional investments. On the other hand, some investors may view Bitcoin as a tool to hedge against inflation, which may lead to increased demand and push up its price.
It should be noted that the cryptocurrency market is full of uncertainty and has significant price fluctuations. Investors should carefully consider whether to participate and take appropriate risk management measures based on their own risk tolerance and investment objectives. Market sentiment, macroeconomic factors, and policy changes can all have an impact on cryptocurrency prices. St. Louis Federal Reserve Chairman James Bullard recently expressed his views on the US economy and interest rates, which may have an impact on the price of the special currency.
Brad urged the Federal Reserve to continue raising interest rates despite sustained inflation and economic growth. He explicitly denies the claim that the US economy is in a recession or banking crisis. As a member of the Federal Reserve, Brad believes that a strong job market will lead to higher consumer spending, which is crucial for the economy. However, some experts are concerned that his stance may have a negative impact on the price of Bitcoin. This concern stems from the idea that when interest rates rise, it usually leads to a stronger US dollar, leading to relative depreciation of other currencies, including Bitcoin. Therefore, if the US dollar appreciates due to rising interest rates, investors may shift their attention from cryptocurrencies such as Bitcoin to traditional investments. Therefore, the appreciation of the US dollar may lead to a decrease in the value of Bitcoin, a currency considered a safe haven asset. It should be noted that there are many factors interacting in the market, so the price of Bitcoin is influenced by many factors. Investors should closely monitor the development of economic and monetary policies and carefully consider investment strategies to adapt to constantly changing market conditions.
Bitcoin prices have recently experienced a period of decline, dropping to $28555 before entering the oversold zone. Some key technical indicators, such as relative strength index (RSI) and moving average convergence bifurcation (MACD), have confirmed this situation. In addition, the four hour trend line provides support at this level, and the hammer shaped candle chart indicates that bearish sentiment has weakened. A possible rebound may push Bitcoin prices to a 23.6% Fibonacci pullback of $29000, breaking through this level will lead to Bitcoin prices rising to $29250 (38.2% pullback). If the upward trend continues, Bitcoin may test the 61.8% retracement position of $29700, but it should be noted that the double top shape near $30000 may pose a challenge. On the other hand, if the price falls below the support level of $28555, it may trigger further selling, pushing the price down to around $26500.
On the macro level, the Markit PMI of the US manufacturing industry unexpectedly exceeded 50 in April, and the PMI of the service industry also increased, which may indicate a sustained recovery of the US economy. In addition, recent Federal Reserve officials have repeatedly expressed support for further interest rate hikes, and rising inflation expectations may also have an impact on the price of the special currency.
Generally speaking, the Bitcoin market is highly volatile, and prices are influenced by many factors, including technical indicators, macroeconomic data, and market sentiment. Investors should closely monitor market trends, adopt prudent investment strategies, and fully understand risks.
Ethernet (ETH) is the second largest cryptocurrency by market value and has recently considered some price trends.
Once the price of Ethereum exceeds $1950 in the United States, it may trigger an upward trend, possibly leading to an increase of $2050 or even $2120 in the United States. However, if Ethereum fails to maintain above $1925, the price may drop to $1725. Currently, due to the impact of PMI (Purchasing Managers Index) data and pledge unlocking, Ethereum prices are showing a downward trend, currently trading at around $1845 in the United States.
From the hourly chart, there is currently no obvious W-bottom pattern, and prices have ended the stable adjustment trend of a downward triangle. The usual adjustment may cause the price to drop to around $1725, or stop falling at the support level of $1820, and gradually form a composite push wave.
In technical analysis, normal price fluctuations include various forms, including pulse waves and correction waves, as well as differences in rise and fall cycles, and even complex trend lines, including triangles, may appear. Technical analysts often use these patterns to guide their trading decisions.
It should be noted that the cryptocurrency market is full of uncertainty and has significant price fluctuations. Investors should act cautiously and make decisions based on their risk tolerance and investment objectives. At the same time, it is also important to closely monitor market news and events, as these factors can have a significant impact on prices.
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