Bitcoin price expected to drop 5%, but to where? Arabic Bitcoin | Bitcoin news
Bitcoin price expected to drop 5%, but to where?
Expect Bitcoin (BTC) price to decline sharply, as it fell by more than 5% from $23,500 to $22,240 in the last hours.
Similarly, Ethereum, the second most valuable cryptocurrency, is also down more than 5%.
This decline resulted in a loss of approximately $22 billion from the total market capitalization of Bitcoin, which currently stands at $430.9 billion.
#Bitcoin down 5% after a 40% climb to start the year
— Mohegan ₿TC 🟠 (@MoheganBTC) March 3, 2023
The ongoing fallout from Silvergate Bank may be the reason for the sharp drop in BTC’s value, as it has added to the uncertainty surrounding the paper slope.
In addition, the US authorities are seeking to cut further financial ties between cryptocurrency companies and FDIC-insured institutions, which is also seen as a significant factor in the depreciation of Bitcoin.
#Bitcoin #BTC price slides below $22,300 amid the Silvergate “Crypto bank” uncertainty.
That’s about $1,100 drop in about an hour! pic.twitter.com/VFNGwfyAca
— CryptoBusy (@CryptoBusy) March 3, 2023
The losses in the bitcoin price were also fueled by growing concerns about rising interest rates.
Global cryptocurrency markets fell due to a series of positive US economic data, which indicated that the Federal Reserve may need to raise interest rates higher and for a longer period.
Probability of 50 bps interest rate hike by #Fed in next meeting on 22 MAR has now increased to 30.6% due to strong weekly jobs report indicating strength in labor market! pic.twitter.com/hNV9Jg7YqI
– Anish Nanda (@anish_nanda) March 2, 2023
As a result, the cryptocurrency markets have been flashing red, which has contributed to the drop in Bitcoin prices.
Expect the Bitcoin price to go down
Bitcoin has a current trading price of $22,396, with a 24-hour trading volume of $26 billion.
The BTC/USD technical outlook is for a breach of the symmetrical triangle pattern at the $23,250 level, with a breakout exposing BTC price to the $22,046 support area.
On the downside, a further breach of this level could push BTC towards the $21,450 mark.
A bearish engulfing candle formation indicates a strong selling tendency.
However, if the candles close above this level, an upward retracement is likely, with a target of $22,800 or higher, towards $23,750.