Bitcoin Heads Toward Its Crucial Price Of $29K! Will BTC Price Rebound Or Plunge Further?

The crypto market has witnessed rollercoaster-like price fluctuations today, triggering a massive selloff sentiment among investors. Bitcoin, the most prominent digital currency, has seen its price going through a massive bearish rally, with its latest turn being a steep decline to the pivotal price of $29,000. After several days of enjoying a bullish rally above the $30K threshold, the sudden crash has left investors and market analysts questioning whether Bitcoin will recover or continue its descent. 

Crypto Market Liquidation Reaches $250 Million 

The crypto market is currently grappling with a bearish phase, as the global market cap witnessed a 3.57% reversal in growth, now standing at $1.22 trillion. This downturn comes as no surprise, as the market has been experiencing consistent liquidations for the last few hours.

According to data from CoinGlass, the liquidations have now surpassed $249 million within the past 24 hours, signaling increased uncertainty and volatility in the crypto market. Bitcoin’s price has experienced a 3% decline in the past 24 hours, plunging to $29,100 and slipping below the psychologically significant $30,000 threshold. This level harkens back to last June when the cryptocurrency’s value hovered around the same mark before the selloff intensified, ushering in a merciless bear market.

The liquidation in the crypto market came after the Bank of England and the European Central Bank weighed the possibility of further interest rate increases to rein in inflation and achieve target rates. Market participants have adopted a cautious stance as US Fed officials James Bullard and Raphael Bostic advocate for a higher terminal rate of 5.50% to 5.75% and an additional 25 bps rate hike in May. 

Can BTC Price Hold This Level?

Bitcoin witnessed a sharp decline recently, following a robust rebound above the crucial $30,000 threshold just the day before. Bulls found themselves struggling to maintain higher levels as market volatility reared its head once more. Consequently, Bitcoin’s value plummeted to its lowest point since April 10, highlighting the latest obstacle in the cryptocurrency’s ongoing battle to secure a foothold in the upward trajectory. 

As of writing, Bitcoin price trades at $29.3K, declining over 3.5% in the last 24 hours. As the BTC price approaches the EMA-20 trend line at $29K, it creates enough confidence among sellers to trigger more short positions in the price chart. Analyzing the daily price chart, Bitcoin is predicted to decline more and test its support near $29K. If BTC falls below $29K, a severe plunge may emerge, forcing BTC price to trade near $27.5K. 

According to a well-known crypto analyst, Van De Poppe, Bitcoin’s short positions may get liquidated if it maintains $29.3K. The analyst further relieves investors as a breakout above $29.7K will again bring the BTC price to the $30K range.