Bitcoin (BTC) fell to its lowest level since March 8 on Thursday, when a stronger US dollar put selling pressure at around $ 60,000.

The BTC price comes from around $ 40,000.
Data from Cointelegraph Markets Pro and Tradingview showed that BTC / USD is testing $ 50,000 for the first time since support closed earlier this month.

Seeing a deviation from the $ 60,000 level, Bitcoin struggled to maintain higher levels throughout the week, and the final sale eventually led to the disappearance of the $ 50,000 support.

The largest cryptocurrency fell almost 10% in one day, but at the time of writing, buyers are holding it in the $ 40,000 to $ 50,000 range.

The weakness coincided with news from the US Federal Reserve, which focused on a possible end to monetary intervention. President Jerome Powell said the economy was recovering better than expected.

“As we continue to make significant progress toward our goals, we will gradually recover the number of government securities and mortgage-backed securities we have purchased,” CNBC said in a statement.

“We want to act very gradually and with great openness. When the economy is almost completely restored, we will give up the support we gave in crises. ”
The dollar received a bullish signal when the US dollar index (DXY) reached its highest level since November 23 on the same day.

As reported by Cointelegraph, DXY and BTC / USD figures, while falling slightly this year, tend to be inversely correlated.

Oversold area
In spot markets, the withdrawal generally did not bother traders. A lot of support remained at $ 46,000 and above, which some previously said would save Bitcoin from more serious losses in the event of a bearish withdrawal.

Therefore, they advised to use today’s climate as a shopping opportunity.

“While people in the markets are screaming about this solution, you can also develop potential entry points,” said Michael Van de Pope, an analyst at Cointelegraph Markets, to his Twitter followers.

His trader Scott Melker suggested that the market “moves” into the oversold zone, which may indicate an impending reversal.

Meanwhile, the company’s sentiment remained optimistic after Real Vision chief Raul Pal revealed that the Singaporean state fund has been buying bitcoins from miners since 2018.

In an interview with Pal NYDIG, which provides access to bitcoins through various funds, she confirmed that she was in talks with several named sovereign organizations.

Source: CoinTelegraph

LEAVE A REPLY