Bitcoin Price Threatens To Crash Below $27,000 – What’ll Stop The King Coin’s Freefall?
The king of cryptocurrencies is once again the talk of the town as Bitcoin price continues to struggle in the market. With prices hovering just above the $27,000 mark, many investors are wondering if Bitcoin will ever recover from its recent slump.
As the broader cryptocurrency market trades sideways, the fate of the crypto king remains uncertain, leaving traders and investors alike wondering how and when it will recover.
Recent Bitcoin Price Performance Sparks Future Path Debate
The start of 2023 saw Bitcoin making headlines for all the right reasons. The cryptocurrency giant has led a stunning recovery that has lifted the entire crypto ecosystem, proving the naysayers wrong and declaring the asset dead multiple times in 2022.
Bitcoin price skyrocketed over $30,000, marking an impressive run that has many investors optimistic about its future. However, that high tide was abruptly stopped and the asset’s value dropped to $27,000, sparking speculation as to whether this is just a minor correction or the start of a more significant downtrend.
Source: CoinMarketCap
As of now, Bitcoin is trading at $27,300, down 0.44% daily at CoinMarketCap. Despite this drop, there are several reasons to believe that the King Coin will soon break above the $30,000 zone.
Upcoming economic indicators may affect the Fed’s interest rate hike
The financial market is attentive to the release of economic indicators such as Personal Consumption Expenditure (PCE), Gross Domestic Product (GDP) and unemployment claims on April 27as they may impact the possibility of an interest rate hike by the US Federal Reserve and the decision of the Federal Open Market Committee (FOMC).
According to the CME Group FedWatch Toolthere is a growing probability of another interest rate hike, which could add more pressure to the US financial system, with a 90% probability of an increase of 0.25%.
Crypto Awakenings, an investor, foreseen that if Fed Chairman Jerome Powell announces a pause in interest rate hikes, it could trigger a break above $30,000 for Bitcoin price. On the other hand, if there is a bullish announcement, the market may have already priced in and confirmed that a “sell in May and walk away” strategy will not be effective in 2023.
Crypto Awakenings predicts that a break could occur in May or July, with May being the most likely month. However, the market is very uncertain and fluctuations can occur.
The price of Bitcoin generally reacts to macro factors, so we are yet to see the details that would contribute to the alpha cryptocurrency’s recovery or decline.
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