According to a recent Bloomberg story, the price of Bitcoin might plummet to as low as $26,000 if a “bearish flag” technical pattern plays out.
On Monday, the largest cryptocurrency had a difficult start to the week, falling below $40,000 for the first time since mid-May.
According to Coinglass, $439 million worth of cryptocurrencies were liquidated in the last 24 hours, with long holdings accounting for 88.03 percent of the total wipeout. Bitcoin futures traders parted with $160.19 million.
The Federal Reserve’s hawkish reversal has rekindled the dollar boom while also putting pressure on risk assets like Bitcoin. The US dollar index (DYX), which gauges the strength of the greenback against a basket of foreign currencies, recently surpassed 100 for the first time in two years. The benchmark Dow Jones Industrial Average index fell 1.89 percent on Monday, putting the US stock market in the red.
Bitcoin may now be on course to test a key support level of roughly $37,500, according to the research. Failure to find some sort of footing here might be terrible for bulls.
Bitcoin is currently trading at $40,121, failing to recover following a spate of significant losses.
It’s down 41.81 percent from its all-time high.
According to Jeffrey Halley of Oanda, the largest cryptocurrency is trading inside the defined range. Of course, which has a bottom limit of $36,500. If Bitcoin falls below that level, it will almost certainly lose a lot of money. According to Halley, if Bitcoin rises above the upper barrier of $47,500, a new record high could be within reach.
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