Bitcoin correction deepens. It could be directed to these levels.

[ad_1]

Bitcoin and other cryptocurrencies slid again on Wednesday, falling further from key levels amid a deeper and deeper correction from the peak of a rally that supported digital assets until present this year.

The price of Bitcoin has fallen 1% in the past 24 hours to around $26,850, the lowest level for the biggest crypto since a brief dip last week and, before that, in early March when prices went from less than $21,000.

Bitcoin reclaimed the psychologically important $30,000 zone in April for the first time since last June, when crypto selling accelerated in a brutal bear market, but failed to consolidate those gains and has since corrected. . Yet Bitcoin is up nearly two-thirds this year amid a rally from multi-year lows hit following the collapse of crypto exchanges FTX in late 2022.

A moderate uptrend can be discerned on Bitcoin’s intraday charts, but it’s worth noting that the price is failing to move higher from this local support, which is now moving near $27,000, Alex Kuptsikevich said. , analyst at the broker FxPro. Traders should be prepared for a price drop to the $25,000 area as the market looks set for a full rally correction from the November lows.

An uncertain macro backdrop that has also created stock market volatility for the Dow Jones Industrial Average and S&P 500 in recent days is not helping. The looming US debt ceiling and the challenges of reaching a deal to avoid default, along with growing worries about global economic growth, weighed on sentiment in risky assets this week.

Advertising – Scroll to continue

A number of Federal Reserve officials this week also challenged market expectations that the central bank could be set to cut interest rates this year, quashing a narrative that has helped lift cryptos higher. in 2023.

Rise in US Treasury yields [as a result of debt ceiling negotiations] pressured Bitcoin’s upside potential. Additionally, several regional Fed chairs said on Tuesday that there could be additional rate hikes if needed, said Bitbank analyst Yuya Hasegawa.

Bitcoin, like tech stocks in the Nasdaq Composite, is highly sensitive to fluctuations in long-term Treasury yields, which represent safe returns on US government debt. When yields rise, it makes yields on much riskier assets, like cryptos, less attractive and tends to depress prices. The surge in yields in 2022 based on the dramatic rise in interest rates was a key driver of Bitcoin’s big sell-off.

Beyond Bitcoin, Ether the second largest cryptolost 1% at $1,800. Smaller cryptos or altcoins exhibited more or less the same, with Cardano and Polygon each down nearly 1%. Memecoins were more mixed, with Dogecoin gaining 2% and Shiba Inu

Advertising – Scroll to continue

lose 1%.

Write to Jack Denton at [email protected]

[ad_2]