The crypto market is down and the bitcoin prices are dropping today. Reason-The fear ahead of the next Federal Open Market Committee(FOMC) meeting that may roll out fresh interest rates. This has impacted the other cryptos as well which have dropped significantly after marking the yearly highs during the previous couple of days. The primary catalyst for the downfall appears to be the investor’s speculation over the fresh rates.
The Bitcoin prices rose out of the consolidation and surged high but failed to mark the highs at $24,000 during the past weekend. The sudden rise also carried the possibility of a pullback, majorly to extract the profits after the fresh jump. After the recent jump, the platform witnessed the largest profit/loss transactions ratio since Feb 17, 2021.
As per the data from Santiment, the profit transactions on BTC surged over 2.4 times compared to that of loss transactions. Therefore, if the loss transactions pile up, then the prices are subjected to rebound shortly.
“ Among few warning signs that yesterday’s crypto prices would see a pullback today included the largest profit/loss transaction ration for Bitcoin since Feb. 17, 2021. If loss transactions pile up now, prices are more likely to bounce right back,”
Currently, the Bitcoin price is consolidating within a descending trend and is trading below $22,800. Moreover, the indicators continue to flash bearish signals as the MACD is closer to displaying a bearish crossover, while the RSI is plunging and dropping below the support levels. Therefore, the BTC price is believed to drain a little more and rebound when the prices are trading carrying extreme losses.
Source: https://coinpedia.org/price-analysis/why-is-the-bitcoin-price-falling-was-the-increase-above-23900-calculated/