The world’s most valuable cryptocurrency BTC On April 11, fell below $40,000 for the first time since March 16th. What could be the factors responsible for these? Who are the enemies of Bitcoin? Are professional traders leaning bullish or bearish on Bitcoin?
As of writing, Bitcoin is around $40,000 from the Gate.io trading platform, which is the lowest price in two months, and should it continue to fall, we may see the bears taking over the market.
The Bulls held the Bitcoin price above $40,000 for the past few days and starting a new week, the bears took over the market aggressively with Bitcoin breaking the lower support level.
Across the cryptocurrency markets, about $152 million in liquidation has occurred among Bitcoin traders and over $439M liquidation across the crypto market within the last 24 hours.
About 150,000 traders have lost their positions. Will this downtrend in the crypto market continue or should we expect the bulls to take over the market? Investors need to know if the Bitcoin price will retest the $33,000 level or not.
The market is currently finding it hard to gain back investors’ and traders’ trust.
From the bitcoin price live on the Gate.io trading platform, BTC trades below $40,000. The bulls will try to defend this crucial support, and if they fail to defend this support below $37,000, it will be a massive downward trend, and this will lead to panic buying and selling.
The bears will also want to contest the Bitcoin price at $37,000 which has been a crucial support for the bulls. In the coming days, we will see if the bulls can defend the $37,000 support as it did on March 13 and rallied it to a $48,000 high.
The Effect of The United State Federal Reserve Policy on the Bitcoin Price
In the first week of Q2, the Federal Reserve signaled it will start slashing assets from its $9 trillion balance sheet at twice the rate it did on its previous “quantitative tightening” exercise.
Also, from the March FOMC meeting, the majority of the commissioners want the central bank to increase the interest rate by 50 basis points, as part of the plans to reduce the four-decade high inflation figures. This news affected the general market and Bitcoin went down.
Cryptocurrency investors and traders need to weigh the potential effect of an increase in interest rates, skyrocketing inflation, and global commerce being disrupted by the war from the attack of Russia on Ukraine. The selling pressure is increasing among traders and investors.
News from The Bitcoin Miami Conference
As the Bitcoin Miami conference ended on 9 April with the largest Bitcoin gathering of over 25,000 attendees celebrating the world’s most popular cryptocurrency and other assets, there were lots of price predictions for Bitcoin optimists such as Peter Thiel, a venture capitalist and co-founder of PayPal, that Bitcoin has a potential to get to 100x by the second quarter of 2023.
Furthermore, as he gave the keynote speech, he unveiled his list of Bitcoin’s enemies which include “Warren Buffet and JPMorgan Chase”.
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Source: https://coinpedia.org/guest-post/the-battle-between-the-bears-and-the-bulls-for-the-control-of-bitcoin/