Bitcoin (BTC) Dips Below $40,000 Over e And Possibility Of Fed Rate Hike

[Bitcoin]

Bitcoin (BTC) Dips Below $40,000 Over e And Possibility Of Fed Rate Hike

The price of Bitcoin plummeted below $40,000 on Monday, while other cryptocurrencies saw losses, according to Coingecko data.

BTC is trading extremely close to two long-term support levels but has not yet demonstrated any bullish reversal indicators.

This comes as investors remain wary of the situation in e and the possibility of a US central bank rate increase.

The global cryptocurrency market cap is $1.80 trillion, down 2.04 percent from the previous day. The overall crypto market volume over the last 24 hours has increased by 20.13 percent to $65.06 billion.

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The 50-day and 100-day moving average lines crossed bullishly last week; nevertheless, Bitcoin was unable to maintain the bullish momentum and witnessed a price shakeout.

Later in the week, the price recovered and attempted to break above the moving average lines once more, but was swiftly rejected and fell below the $40,000 level.

Bitcoin Selling Pressure

During the week of April 18-24, BTC prices declined marginally. While the week began with an upward advance that resulted in a local high of $42,976, the price declined in the later part of the week, resulting in a protracted upper wick (red icon). This is interpreted as an indication of selling pressure.

BTC is currently trading considerably below the $42,000 mark. This is a critical long-term level that has served as both support and resistance intermittently since May 2021.

BTC total market cap at $731.41 billion on the daily chart | Source: TradingView.com

“Bitcoin and the majority of cryptocurrencies fell over the weekend as a result of growing tensions in e on the one hand and the US Federal Reserve’s views on interest rate hikes due to inflation on the other,” Edul Patel, chief executive and co-founder of Mudrex, explained.

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BTC Seen To Lose Upward Momentum

Bitcoin currently has a support level of $37,000 and a resistance level of $46,000. According to Patel, crypto investors may see the two major cryptocurrencies, BTC and ETH, lose their upward momentum.  ETH is down by 3% and has been trading below $3,000 since Friday.

“If BTC falls below $35,000, the next significant support level will be $30,000. In the following days, we may see range-bound trading,” Patel said.

Meanwhile, the $42K support level for BTC has morphed into a significant resistance level in the shorter timeframes following the price’s failure to break above it.

At the $42K level, selling pressure was visible, resulting in a sharp plunge to the $39K zone, which is currently being tested.

Featured image from Newsweek, chart from TradingView.com

Source: Bitcoin (BTC) Dips Below $40,000 Over e And Possibility Of Fed Rate Hike