Bitcoin, the cryptocurrency market leader, recorded a drop below $29,000 on Thursday after the minutes of the latest Federal Reserve (Fed) policy meeting were released. Other news also affected the market.
Bitcointhe market leader of cryptocurrencies registered a fall below $29,000 on Thursday after the minutes of the last meeting of the policy of the Federal Reserve (Fed). In this context, BTC accumulated a decline of more than 10% this week. Meanwhile, Ethereum fell 10% and the market showed a lack of liquidity and its vulnerability to exogenous variables in recent times.
One example of this is the news that the Chinese real estate giant evergrande filed for Chapter 15 bankruptcy protection in a Manhattan courthouse prompted institutional investors and large holders to dump riskier assets, such as Actions and Bitcoin, which caused the sudden fall. Meanwhile, the news that Elon Musk sold his holdings in the cryptocurrency did not help with this difficult situation in the market either.
Within the world of cryptocurrencies, the one that marked the greatest resistance was Tron (TRX) which unexpectedly only fell 4.8%. In addition to Bitcoin and Ethereum, BNB, Ripple, Dogecoin, Solana, Polkadot, Polygon and Avalanche also had a hard time registering losses of between 10% and 20%.
The word of one of the crypto gurus
According to the analyst Peter Brandt, largest cryptocurrency by market capitalization is at risk of canceling out its recent uptrend. Through the social network X, he exposed his almost 700 thousand followers of X (ex Twitter).
“Bitcoin BTC drop is once again retesting cleavage in the [patrón] underlying inverted head and shoulders A close below $24,800 (the low of the previous test) would invalidate the daily and weekly charts.”
In this sense, the renowned analyst stated that Bitcoin violated a diagonal support that kept its price in an upward trend since the beginning of the year. In this way, Brandt exposes that BTC will experience a downtrend unless it recovers the uptrend line.
Bitcoin: the reason why the price does not rebound
According to data firm Kaiko, liquidity in the Bitcoin market has been declining for some time on major exchanges like Binance and Coinbase. This means that when the big holders want to change their holdings, the rest of the market will feel it.
Source: Ambito
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