Bitcoin price drops over 5%, concerns raised. Will BTC find support above $24,000?
There is an image of Bitcoin at the beginning of the page, which is followed by an article discussing the recent 5% drop in Bitcoin’s price and how it has raised concerns among investors and traders. Bitcoin’s price movements often have a significant impact on the broader market, so the question now is whether it can find enough support to prevent further declines and stabilize above the crucial $24,000 level. The article also provides a Bitcoin price prediction and analyzes the current market conditions and key factors that could influence the future direction of BTC.
The article then transitions to discussing the United States Federal Reserve’s decision to maintain the federal funds rate at its current level this month after a series of 10 consecutive rate increases since March 2022. The decision comes in light of indications pointing to a modest uptick in economic activity, as highlighted in the FOMC statement. The FOMC’s ongoing objective remains to reduce inflation to the target range of 2% to 3%. The latest data on the consumer price index (CPI) reveals a moderation in inflation, with the annual rate dipping to 4%. To achieve the goals of 2% inflation and full employment, the FOMC has chosen to maintain the target range for the federal funds rate at 5 to 5-1/4 percent.
The article then discusses how the pause in rate hikes can be taken as supportive for risk assets such as crypto, but the so-called “hawkish pause” stance of Fed policymakers signals more rate rises to come, which is a negative for bulls. As a result, traders have looked past the Fed’s interest rate hiking pause and placed more weight on Powell’s comments about the need for more rises before year’s end, thus sending prices lower in already fragile crypto markets suffering from declining liquidity.
The article then transitions to discussing how Miami Mayor Francis Suarez, a Bitcoin advocate, has officially registered to run for president with the Federal Election Commission. Suarez aims to transform Miami into a thriving Bitcoin hub and has even started accepting his salary in Bitcoin. Despite facing tough competition from prominent contenders, Suarez may face challenges in gaining national recognition. In a 2021 interview with blockchain, Suarez praised Bitcoin’s potential to democratize wealth and mentioned exploring the use of Bitcoin for tax payments and compensating municipal workers. He also introduced MiamiCoin (MIA), based on the Stacks blockchain, believing that it could provide regular BTC incentives to Miami residents in the future. Although MIA and another city token, NYCCoin, faced trading suspensions due to liquidity issues on OKCoin in March, Suarez remains unwavering in his trust in cryptocurrencies.
The article concludes with a current Bitcoin price update, noting that it is currently trading at $25,105, marking a nearly 5% decrease on Thursday. This drop comes in the wake of a hawkish statement from the Federal Reserve and a turbulent week for the cryptocurrency market, causing Bitcoin’s price to fall below the $25,000 threshold for the first time since mid-March. On the technical front, when examining the four-hour timeframe, Bitcoin has already established a double-bottom support level of around $25,600.
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Furthermore, a bearish candlestick pattern known as the “three black crows” has emerged, indicating that there may be a continuation of the downward trend in Bitcoin’s price.
The MACD and RSI indicators, which are in the selling zone, suggest that the next support level to keep an eye on is around $24,350.
The 50-day exponential moving average also supports the downward trend in Bitcoin’s price.
Therefore, it is crucial to closely monitor the $25,000 level, as breaking below it could result in further downward movement.
However, if the price of Bitcoin were to close above $25,000, it could trigger a bullish retracement toward the $25,600 or $26,200 levels.
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