Despite the fact that the crypto executive order bolstered the cryptocurrency market, there are still fears about rising inflation. The entire attention will be on the impending rise in U.S. inflation, which is projected to be exacerbated by the current geopolitical scenario.
The Federal Reserve (Fed) has historically had the largest impact on cryptocurrency markets, whilst European Central Bank (ECB) rate choices have had little to no impact. Thursday’s statement, according to one observer, is crucial.
Bitcoin has risen above $40,000 twice in the last month, but it hasn’t been able to hold this level for very long. The Federal Reserve of the United States can hike interest rates faster than expected in the face of rising inflation data, therefore volatility is likely to endure.
Bitcoin Price to Crash Soon?
A seasoned trader who emerged into the crypto scene after correctly predicting Bitcoin’s 2018 crash is revising his thoughts on the leading cryptocurrency. After a significant bounce from $38,000 to over the $42,000 level, Peter Brandt feels BTC is developing an attractive pattern.
The investor informs his Twitter followers that the top digital asset by market capitalization is displaying an “interesting” technical setup. BTC Price has now climbed above a historic level of support and resistance around $41,757, while also posting a higher low after striking a bottom at $33,500, according to his analysis.
BTC is the king of digital assets, according to the senior expert, and traders who opt to diversify their BTC holdings into other crypto assets may regret it in the future.
Also Read : Bitcoin Primed to Breakout on 28th March, BTC Price May Hit $50K Very Soon!
With that in mind, Brandt says he isn’t a fan of “HODLing” Bitcoin because of the dramatic drawdowns, which can compel traders to wait a long time for their holdings to be profitable.
“I’m NOT a fan of hodling Bitcoin. Bitcoin has a history of 80% declines, 4 in 11 years. A hodler needs 400% each time to return to [all-time highs]. I hate having to make the same money over and over and over again. Hard enough the first time.”
As global markets continue to grapple with the economic consequences of the Russian-Ukrainian conflict, BTC has demonstrated a significant degree of price volatility this week.
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Source: https://coinpedia.org/bitcoin/bitcoin-btc-price-might-drop-to-this-level-2/