Here's Why The Bitcoin Price is Down But Far From Out
The bitcoin price remains down today, with its 0.5% gain in the past 24 hours cancelled out by a 5% drop in a week and 10% fall in a month. However, it has rebounded by nearly 4.8% since reaching a 24-hour low of $18,262 yesterday, which it did in the wake of the Federal Reserve bumping interest rates in the US by 0.75%.
Ongoing rate hikes mean that the price of BTC is likely to remain depressed in the short- and probably medium-term, with central banks elsewhere (e.g. the UK, Switzerland, Norway) following the Fed's example. The ongoing war in Ukraine also ensures the continuation of an inflationary environment, even if recent developments suggest this conflict may have reached a new phase.
Nonetheless, with bitcoin's support kicking in at around the $18,300 level, it's arguable that the original cryptocurrency won't fall any lower in the difficult months ahead. And with major financial institutions still continuing to announce and launch new bitcoin- and cryptocurrency-related services, the stage is being set for a substantial resurgence once the global economy picks up again.
At $19,143, bitcoin's current price marks a 52.6% dive in 12 months, as well as a 72% plunge since its all-time high of $69,044, set back on November 10, 2021.
The coin's indicators remain subdued. Its relative strength index (in purple) is stuck at around 40, signalling slight overselling relative to recent price movements. At the same time, its 30-day moving average (in red) is significantly below its 200-day average (in blue). At some point, it's due to overtake the longer term average, something which could herald a breakout.
Regardless of technicals, bitcoin's fundamentals are as healthy as ever. In addition to asset manager BlackRock opening its
Read more on cryptonews.com
