The post Why Is Bitcoin Price Down Today? How Low BTC Price Might Go? appeared first on Coinpedia Fintech News
The growing bearish influence over the market has successfully managed to drop the BTC price by 5.65% in the last seven days. Currently, the Bitcoin market cap hangs at $1.10 trillion.
As the 24-hour liquidation is on the verge of $100 million, will the sell-off rally in Bitcoin result in a crash to $50,000? Let’s find out.
Bitcoin Price Performance
In the past 24 hours, the Bitcoin price has dropped by 1.14% and is currently trading at $56,025. Struggling to sustain dominance above the $56,000 mark, the Bitcoin price forms an intraday doji candle.
In the daily chart with the doji candle, the BTC price hangs near the base level of $55,852 of the Fibonacci retracement tool. If the BTC price manages to close the day with the doji candle, the possibility of a reversal will increase significantly. Further, a potential morning star could be witnessed for a recovery rally.
Despite the ongoing bear cycle, the daily chart reflects a bullish flag pattern. However, the support trendline is far away from the current price and can result in a price drop to the $52,500 level.
US Job Market FUD Drops Bitcoin
With the US jobs report coming on Friday, a deciding factor in the upcoming rate cut discussion. If the report reveals a shortage of jobs reflecting an economic slowdown, the chances of a rate cut will increase to boost the economy. The rate cuts make lending easily available and increase the investment inflow into risky assets like Bitcoin.
Hence, with a potential rate, the BTC price will likely skyrocket and reclaim the $60,000 mark.
However, with the FOMC meeting in 12 days, the CME Fed Watch Tool reveals a 41% chance of a 475 to 500 basis point rate cut. Hence, the short-term panic with the Job data release is likely to fade next week, resulting in a recovery run.
Will BTC Price Hold Above $55K?
Despite the ongoing downfall, the BTC price is reflecting indecision in the market with a Doji near $55,500. Hence, the chances of Bitcoin surviving the crash above the $55K mark are significant.
However, a minor correction is possible if the sentiments deteriorate near the Job report release. On the positive side, a slowdown in the Job sector will result in a sentimental boost for the crypto market. The increased rate cut chances will boost the BTC price to the $60,000 mark.
Concerned about how the BTC price will conclude in the year 2024? Our Bitcoin (BTC) Price Prediction addresses this and more!