Key facts:
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Bitcoin price falls 11% to $35,600 today, following hitting $40,000 the day before.
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Analysts believe that it might continue to fall to USD 33,000.
The price of bitcoin (BTC) plunged 11% today reaching $35,600. A figure not touched since February 24, when the start of Russia’s war once morest Ukraine shook world markets.
The cryptocurrency yesterday had reached USD 40,000. But given the lack of confidence that interest rates in the United States can continue to rise, the price of bitcoin fell sharply today, as did Wall Street stocks. Nasdaq’s NDXT stock index, which lists the top 100 technology companies, fell 5% so far on the day.
This shows that investors are selling their assets, which has caused them to fall in price. Likewise, it indicates that the market is sensitive to the economic measures of the United States, which is currently registering historical records of inflation with an index that reaches 8.5% YoY A number similar to Europe that reached 7.5%.
Will Bitcoin go up in price or will it continue to drop?
The minimum price that bitcoin touched in 2022 was USD 34,600 on February 24, the day Russia started the war in Ukraine. Since then its price has mostly stayed above $37,000, which became its support line until today that broke it by falling below this amount.
Analyst Willy Woo in his latest report sent to CriptoNoticias said: “The price of BTC is highly correlated with stock market shares, which threatens to fall further.” Likewise, he warns that even if the macro markets stagnate, the price of the cryptocurrency might continue to fall. Nevertheless, believes that the recovery in value will be rapid and sees long-term bullish behavior.
“BTC is bottoming out but there is still a risk of further sell-off if macro markets stall, but if this happens the BTC recovery should be quick given spot demand from investors and hodlers,” Woo said. Despite the sales, for the first time in history there are more than 836,000 addresses with a balance greater than one full bitcoinaccording to data from blockchain analytics firm Glassnode.
The firm Ecoinometrics noted at the beginning of the week that bitcoin might be around USD 30,000 Coming soon. This line would appear to be the minimum support it would reach, following a strong sell off by traders. A figure that resembles the minimum that he touched in the sharp fall he made in the middle of last year at USD 28,000.
Analyst Woo stresses that we are seeing a supply shock structure developing, with very strong purchases of bitcoin that have not been reflected in the price. “This usually ends in a big bullish price squeeze,” she notes, warning that this may take time to play out.
In this sense, we might be seeing a possible brake on the support line for the year, which has been USD 34,000, although only time will show it. Everything will depend on the minimum price that traders are willing to pay. buy and sell. Perhaps USD 35,000, being a rounder number, is a better psychological support for investors. bitcoin investors.
