Bitcoin Plunges 10% As Nasdaq Tumbles, Backfires By

By David Wagner – After regaining ground on Wednesday evening following the relief of a less hawkish than expected Fed meeting, and after stabilizing just below the $ 40,000 mark in the first part of the day yesterday, Bitcoin fell sharply yesterday afternoon.

bottomed out around $ 36,200 last night and remains close to that level this Friday morning, down nearly 10% over 24 hours.

A powerful wave of risk aversion shook most stock markets yesterday, correcting the previous day’s surge against the Fed. The US technology index, which is highly correlated with Bitcoin and crypto in general, notably fell by 5% at the close.

Bitcoin’s technical profile deteriorates further

From a technical point of view, there are also clear justifications for the fall of Bitcoin yesterday. In fact, the $ 40,000 threshold was approached the day before, without traders daring to cross it, and after several hours of hesitation, the sellers finally took the lead, according to the stock market adage that “what fails to rise eventually falls”.

In addition to confirming the importance of the $ 40,000 resistance, yesterday also saw a break below the $ 37,500 chart support, a threshold that now becomes immediate short-term resistance.

If the decline continues, the next potential supports will be the February 24 low around $ 34,400, and the January 24 low around $ 33,000. After that, the major psychological threshold of $ 30,000 could be targeted.

On the upside, if Bitcoin rebounds above $ 37,500, the resistance to consider will be the psychological threshold of $ 40,000 and the 100-day moving average currently around $ 41,000.

Finally, in terms of potentially influential events for bitcoin, cryptocurrencies, and financial markets, in general, this Friday, investors are awaiting the NFP report on US job creation for April, as well as several speeches from Fed members.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button