Bitcoin Price Prediction: BTC's 11% Drop Amid Market Dynamics and Key Events
Amidst a volatile landscape, the cryptocurrency market has witnessed Bitcoin, currently trading at $26,423, experiencing a significant decrease of nearly 11% in the last seven days.
This decline unfolds against the backdrop of notable events and developments that continue to shape the crypto realm.
In the midst of these fluctuations, concerns raised by figures such as Trump, who warns of potential repercussions on the US currency system, as well as intriguing moves like SpaceX’s sale of Bitcoin purchased in 2021-2022 for $373 million, have further captured market attention.
Additionally, shifts in Tether’s support for specific cryptocurrencies amplify the intricate dynamics influencing the cryptocurrency ecosystem.
This Bitcoin price prediction delves into the context of BTC’s recent 11% drop, exploring the confluence of market factors and notable occurrences impacting its trajectory.
Trump Raises Concerns About US Losing Control of Global Currency System
BTC/USD is declining today, echoing concerns expressed by former President Donald Trump regarding the United States’ global position.
In a recent interview, Trump commented on the decreasing influence of the US dollar in the global market.
He expressed concern about the country’s decline under the current administration and warned that other nations are moving away from the dollar.
Trump suggested that China’s yuan could potentially replace the dollar, and his comments on energy costs and the possibility of a recession, if he is not re-elected, may have contributed to the downtrend in BTC/USD today.
SpaceX Sells Bitcoin for $373 Million
BTC/USD is declining today, possibly due to recent news about SpaceX’s Bitcoin holdings. Reports suggest that SpaceX, led by Elon Musk, wrote off $373 million from its Bitcoin holdings in 2021 and 2022.
It is uncertain whether the entire stash was sold, but news of this added pressure to market uncertainty.
Elon Musk’s public announcements about SpaceX’s Bitcoin acquisitions and Tesla’s previous crypto purchases have historically impacted BTC’s price.
The crypto market’s downward movement today may be due to high-profile figures like Musk affecting investor sentiment.
Tether Discontinues Support for USDT on Bitcoin Cash, Kusama, and Other Cryptos
The price of BTC may have been influenced by Tether’s announcement to discontinue support for USDT on Bitcoin, Kusama, and Bitcoin Cash due to insufficient traction on these platforms.
This change could impact market sentiment as it reflects changes in stablecoin issuance and usage, leading to increased uncertainty among investors and adding selling pressure on BTC prices on Friday.
Bitcoin Price Prediction
On the technical front, Bitcoin’s trajectory is under scrutiny, with Shabbir Hirose at the helm.
The cryptocurrency has recently witnessed a sharp drop from the $29,000 level to the $26,000 level within a span of just a few days.
Presently, it is establishing a semblance of support around the $26,200 level, along with the closure of a questionable candle pattern.
Delving into this matter further, the likelihood of a bullish correction gains support upon examining the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators.
Both indicators have entered the overbought zone, suggesting a plausible scenario for a bullish correction, particularly if the price remains above the $26,200 level.
Bitcoin Price Chart – Source: Tradingview
Conversely, levels of 23.6% and 38.2% are notable milestones on the path, corresponding to potential support and resistance levels.
Respectively, they are likely to materialize around $25,600 as a target and $26,800, as well as $27,200 levels, as resistance.
Additionally, ongoing fluctuations may expose Bitcoin’s price to the next resistance level of $28,000, marked by the 61.8% Fibonacci correction level.
Alternatively, a breach below the $26,200 level bears the potential for a further descent towards the $25,600 level.
However, current market conditions suggest a focus on the $26,200 level. If this level is upheld, it is likely to attract buying interest, while selling positions could materialize if it is breached.
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