Bitcoin has had a volatile ride recently, with an 8% price drop causing investors concern. However, the cryptocurrency has recovered from this slump and is currently on a roller coaster ride toward a potential target of $30K.
In this Bitcoin price prediction, we will examine the factors that led to Bitcoin’s recent drop and explore its current technical outlook to determine whether it will continue to rise toward this target level.
Wild Swings in the Cryptocurrency Market: Bitcoin and Altcoins Experience Volatility
According to CoinGlass statistics, traders lost almost $310 million in the last 24 hours due to liquidations caused by the dramatic fluctuation in cryptocurrency values, which forced the liquidation of both long and short positions.
Blockchain research company, Arkham Intelligence, noticed that before the price decline, crypto trading behemoth Jump Trading had deposited $26.6 million in BTC to exchanges. Typically, sending tokens to exchanges implies a desire to sell.
Media outlets reported that the BTC price fall was caused by Arkham Intelligence mistakenly alerting users that wallets connected to Mt. Gox and the US government had started moving significant amounts of Bitcoin. BTC/USD dropped after a wild cryptocurrency market swing, resulting in $310M in losses from liquidations.
Fears about the US Banking Sector: FRB Shares Plunge 50% and Boost Bitcoin’s Appeal
Amid concerns about the struggling First Republic Bank (FRB), whose shares dropped 50% in a single day and a further 20% the following day, market sentiment has fallen. This raises the possibility that the FRB may exceed the limits on Fed borrowing, potentially affecting the entire market.
However, BTC/USD has risen as investors gain more confidence in Bitcoin as a hedge against the volatility of the traditional banking system.
As traditional banks continue to suffer financial disasters, investors are increasingly turning to Bitcoin, which has led to an increase in its value. This trend is likely to continue as investor concerns about the US banking sector persist.
US Economic Risks and Bitcoin: How Economic Uncertainties are Affecting BTC’s Price
US Durable Goods Orders rose 3.2% in March, exceeding the 0.8% expectation and the 1.2% fall in February. The data was announced on Wednesday. In addition, the US Conference Board’s Consumer Confidence Index for April decreased marginally from 104.0 to 101.3. These disappointing economic statistics have increased worries about a potential recession this year.
Following the release of the data, the US Dollar Index (DXY) saw fluctuations, trading at its lowest level in the past two weeks at 101.36. BTC/USD, on the other hand, has increased as the dollar declines due to US economic uncertainties.
Looking ahead, the focus is now on the US first-quarter GDP data, which is expected to be released later today. The data is coming before the Fed meeting scheduled for next week, where the markets expect the Federal Reserve to hike interest rates by 25 basis points on May 3.
The BTC/USD pair is currently trading at $29,155, reflecting a 2.50% increase in the last 24 hours. On April 26th, Bitcoin’s price experienced a sharp drop of approximately 8% within a single hour, reaching $27,242. However, BTC/USD regained its momentum due to concerns regarding weaknesses in the US economy and the banking industry.
Today, Bitcoin is encountering an immediate resistance at the $29,350 level, which could push its price toward the next resistance level of $30,000. Increased demand for Bitcoin could potentially lead to a breakout above $30,000, opening up further buying opportunities until the $30,800 level.
Meanwhile, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are both suggesting a bullish bias for Bitcoin. Additionally, the 50-day exponential moving average is supporting a buying trend near the $27,900 level.
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Top 15 Cryptocurrencies to Watch in 2023
Bitcoin’s rebound could be slow, leading profit-seeking traders to consider alternative options. With various emerging altcoins and presale tokens available, numerous promising cryptocurrencies in the market present the potential for significant returns.
As a result, the Cryptonews Industry Talk team has assembled a list of the top 15 cryptocurrencies for 2023, each boasting solid short-term and long-term potential.
The list is constantly updated to incorporate fresh altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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