Bitcoin has been declining for the past six weeks, and investors are surely not happy about these fluctuations. On Monday’s trading, April 26, Bitcoin’s losses were prolonged, as investors shied away from riskier assets amid a more negative view of tightening Federal Reserve (Fed) policies.
The most valuable cryptocurrency plummeted as much as 3.2% to $38,236, its lowest level since March 15 and down more than 20% from its high last month. The second most valuable cryptocurrency, Ether plummeted 4.8% to $2,799, a low not seen since March 18.
According to technical analysts, price charts indicate further falls. According to Katie Stockton, founder, and managing partner of Fairlead Strategies, bitcoin has fallen below the Ichimoku cloud on a weekly chart, with secondary support lying around $27,200.
Bitcoin seems to break a two-month pivotal trend following Friday’s pullback, which is likely to cause a downward weakness to test January lows.
Mark Newton, Fundstrat technical strategist
According to Ziarul Financiar, Bitcoin still remains in the middle of a trading range that has been in place since the start of the year, ranging between $35,000 and $45,000. The digital currency is moving in lockstep with the Nasdaq 100, a technologically advanced index that is negatively associated with the dollar.
With the Federal Reserve anticipated to raise interest rates by 50 basis points in the next months to battle inflation, some of the variables that have supported the spectacular rise in cryptocurrency prices over the past two years have shifted. This means the Bitcoin fluctuations would still continue for a while, with the market set up for a potential decline further on.
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