Bitcoin Price Today: Bitcoin has fallen 45% in a year and the fall has not stopped yet. After all, what are the 5 big reasons behind this? Know the opinion of experts, important support-resistance levels and how right it would be to invest now.
Bitcoin Price Today: There was pressure in the crypto market on Monday. The world’s largest cryptocurrency Bitcoin fell by 1.63% to around $63,500. The main reason for this was the increasing tension between America and Iran and the rise in crude oil prices. Investors fear that if inflation rises again, the US central bank the Federal Reserve may keep interest rates high for a long time.
45% crash in one year
The trend of decline in the price of Bitcoin continues. It has fallen 30.05% in the last 6 months. At the same time, Bitcoin has fallen 45.44% in 1 year. However, it has given a return of 87.77% in the last 5 years. But, considering its past record, this is very low.
5 big reasons for the fall in the price of Bitcoin
1. US-Iran tension: The biggest reason for the fall of Bitcoin is the increasing tension between America and Iran. There is an atmosphere of fear in the markets around the world due to the worsening of the situation between the two countries. At such times investors avoid taking risks. They start withdrawing money from crypto and investing it in safe places like gold and dollar. Its effect was clearly visible on Bitcoin also.
2. Crude oil expensive: After increasing tension, there was a sharp rise in the prices of crude oil. Expensive oil means danger of rising inflation. If inflation increases, interest rates may also remain high for a long time. This fear is weighing heavily on the crypto market.
3. Fed’s interest rate: Investors feel that the US central bank Federal Reserve will not reduce interest rates soon. Some people even hope that there could be another increase at the end of the year. A high interest rate environment is generally not considered good for risk assets like Bitcoin.
4. Failure to cross important levels: Bitcoin tried to cross the level between $65,200 and $65,500, but could not succeed. After this many traders started booking profits. Selling increased and the price reached near $63,500. Technical charts are also indicating weakness at the moment.
5. More selling than buying: One good thing is that spot Bitcoin ETF is continuously inflowing money. This means that the interest of big investors has not ended yet. But on the other hand, many investors are booking profits as soon as the rally starts. Therefore, the effect of purchasing is not fully visible and Bitcoin remains under pressure.
What are the important levels for Bitcoin?
Riya Sehgal, research analyst at Delta Exchange, says that Bitcoin tried to cross the level of $65,200 to $65,500, but could not succeed. After this, profit booking increased and the price came down.
According to him, if Bitcoin goes below $63,000, it may slip to $62,300 to $61,800. Now the market will keep an eye on crude oil prices, US-Iran tension, US bond yields and quarterly results of companies. These things can decide the future direction of Bitcoin.
Is the selling stopping now?
Mudrex Lead Quant Analyst Akshat Siddhant says that there are some good signs amid the decline. On-chain data from Glassnode shows that selling by investors who have held Bitcoin for a long time is now beginning to taper off. This means that the major panic selling is probably in its last stages.
He said that in the last two days there has been a net investment of about $ 290 million in Spot Bitcoin ETF. This has supported the market. However, as the rally continues, many investors are booking profits. This is the reason why Bitcoin is still trading below its 50-month moving average i.e. around $65,900.
What advice do you have for investors?
Avinash Shekhar, co-founder and CEO of Pi42, says that continuous inflow of money into ETF is a good thing. This shows that the confidence of big investors still remains. According to him, the market is currently going through a healthy consolidation. That means this could be a general pause before further rally.
At the same time, Vikram Subburaj, CEO of Giottus, says that one should not make hasty purchases after seeing short-term gains. He believes that until Bitcoin remains above $65,000 and there is continued strong investment in ETFs, a better strategy would be to invest small and avoid taking too much risk.
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