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The king of cryptocurrencies dropped below $29,000 again this evening and stayed there for a while. The price is currently above $29,000 as of 22:20, but the repeated testing of the support level has caused concern among investors. With the anxiety over the upcoming US inflation data, bigger losses are likely in the price in the coming days.
Why is Bitcoin Falling?
Today, after the opening of Wall Street, BTC dropped below $29,000 again following the sell-off in the spot markets. The opening of the stock markets did not provide any relief for the bulls after a sideways weekend and it turned out to be what analysts expected. The price dropped to the $28,800 region.
Popular crypto commentator Daan Crypto Trades commented on the situation, stating that the derivatives trading at a premium over spot puts the bulls in an even less advantageous position.
“Having a constant premium over spot is never a good sign. This is not what you want to see when combined with endless spot selling + volatile price movement. Be cautious out there.”
DecenTrader warns that BTC has entered a period of decline in “most time frames,” and a popular crypto trader had already said that the $29,000 support area was already weakening.
The drop is due to several reasons, such as Tether, Huobi, US inflation, and expectations of a new interest rate hike. However, the reluctance of the bulls to protect the support areas is the result of all of these.
Expert Opinion on Bitcoin Price
The IncomeSharks team says that the price will continue to drop as long as investors do not see weakness in the $29,000 region. Many analysts had already said that losing $30,000 would bring a deeper bottom test into play. Data from CoinGlass shows that a total of $10 million worth of BTC long positions were liquidated during the day.
Rekt Capital stated that the double top formation is in the process of completion on the weekly chart and this will be confirmed in the next month. However, the target of the formation is $26,000. The popular analyst said the following about this:
“What generally happens with this structure, and typically what happens with this region acting as a confluence support zone, is that we have two bull markets developing here with exponential moving averages acting as support.”
Many market experts predict that after the $28,300 and $27,500 support levels, the price could drop to the $26,000 region.
