The largest digital currency, Bitcoin, faced the biggest intraday drop of more than 8% to $36,700. On the other hand, Ethereum was also down more than 7%, along with many other cryptocurrencies. It happened due to the tight monetary policy of the US central bank.
We think the market needs more time to digest these rate hikes because crypto can be the victim of the decision. Investors understand that many governments are trying to regulate this decentralized cryptocurrency, and that is why we can find a sell-off this month.
The Federal Open Market Committee voted unanimously to increase the benchmark rate by 75 basis points on Wednesday. As a result, risky assets such as cryptocurrency and the stock market dropped drastically.
In the last few months, the coin has been trading within a range, and the technical part of BTC is poor in the short term. As a result, we can find $110 million outflows from crypto markets in the last week and more than $300 million outflows in the last four weeks.
While writing this technical analysis, the price of Bitcoin is trading around $36K, which is around the support level. In the last five months, it has been consolidating between a range of $46K and $34K. Due to the recent rate hike, we can find a sell-off, and the price may come to the level of $34K.
It will be interesting to observe if the BTC price comes to around $32K because it is a risky asset, and FED will increase the rate again to control the inflation. That is why it is not the ideal price to buy BTC as per the Bitcoin price predictions.
On the daily chart, today’s candlestick may break the lower baseline of the Bollinger Band. RSI is below 40, and MACD is also bearish with red histograms.
BItcoin’s price has been forming higher highs on the weekly chart until it breaks the support of $34K. If the price of BTC breaks the level, the next support level will be around $30K.
We think traders should hold Bitcoin long-term if they have already invested at a higher level. However, if anyone wants to start investing, it is not the ideal price because the price may come down again in the next six months. That is why traders should wait for a better opportunity to start their investing journey.
Source: https://www.cryptonewsz.com/bitcoin-corrects-almost-8-percent-will-btc-hit-its-support-near-34k/