The Crypto Prices Plunge With Bitcoin Falling Below $25k

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Earlier this week, the cryptosphere experienced trouble again. This time, the market suffered from a dip in risk sentiment following an inflated CPI reading that showed prices rising by 8.6% Y/Y in May. Almost all major crypto assets have tumbled in value. Bitcoin, Ethereum, Cardano, and Solana are all down more than ten percent. The price of one Bitcoin is now below $25,000.

In the United States, the consumer price index, which measures inflation, increased 8.6% year-over-year in May, missing expectations. This news affected both the stock market and the crypto market. As a result, Bitcoin fell under $25k on Monday, the lowest level in almost twelve weeks. The fall in sentiment was exacerbated by news that U.S. inflation data showed that the consumer price index rose at a stronger pace than expected last week. Crypto prices plunge with bitcoin falling below $25k

The Bitcoin price is still struggling to hold its current support level, and most cryptocurrencies fell on Monday. This was partly due to expectations of an interest rate hike by the Federal Reserve, which is expected to be 0.75 percent – the highest increase in three decades. Analyst Will Clemente believes Bitcoin could fall below $20k this week. The cryptocurrency market has been in a bearish phase since the beginning of this year. And it appears the bears are becoming more aggressive as we approach mid-June.

However, the recent sell-off in crypto markets is likely to be short-lived and will eventually subside, if Bitcoin can hold the $25k support level. If the price stays above $25k, investors will have time to buy back at a lower price. In the meantime, governments are taking steps to restore their economies, and the cryptocurrency market is no exception. That said, there is still a lot of work ahead for the crypto market.

The recent plunge in the stock market frightened investors and prompted many to sell risk assets. This correlation between cryptocurrencies and stocks has only increased in recent times. Inflation worries have sent both stocks and crypto to the ground. As a result, the recent volatility is putting additional pressure on the crypto industry. But if investors continue to hold on to their cryptocurrencies, it’s unlikely that they will crash.

If the US inflation data comes in below expectations, the Fed may be less inclined to tighten monetary policy. In the meantime, other risk assets have risen in tandem with the Nasdaq 100 Index. This means that Bitcoin is lagging behind the market in terms of growth.

Other crypto prices have been affected by the recent drop in the bitcoin price. For example, Ethereum is down 14 percent in the final day of trading after hitting $4,891 in November. Another recent news related to bitcoin is the hiring freeze at Coinbase. Even though the Bitcoin community is affected by this, users can continue to withdraw Bitcoin from other networks. Coinbase has lost 76 percent of its value in the past year.

Despite the recent drop, Bitcoin is still showing some positive signs. It is now above its sentimental resistance level of $24K, and has consolidated higher highs on its daily and weekly charts. It could reach as high as $27K by the end of the week. Another important support-resistance line is the 100-day moving average, which currently stands at $25k.

In addition to the above mentioned signals, the BTC/USD pair has breached the upper boundary of a bearish flag pattern. This is a sign that the short-term outlook may turn bearish. In addition, the RSI oscillator is showing an increased tick on hourly charts, indicating that the price may reverse lower. If a correction takes place, the pair could reach the $21,000 support level, but it seems unlikely.

The price of Bitcoin is expected to hit at least $28,000 by the end of 2024. It might even cross the $32,000 bar in 2023. Nevertheless, the market is in a bear market, and there’s a good chance that Bitcoin will fall further. With the upcoming upgrade to Taproot, it could reach even higher prices, allowing for a major improvement in privacy, fees reduction, and the Lightning Network.

Despite the bearish sentiment, the BTC/USD pair has a double top pattern, which may signal that further gains may be forthcoming. Nevertheless, the lack of volume and low volatility may make matters worse for the king of cryptocurrencies. If additional buying occurs, the price could reach the $25,000 resistance zone. However, it is worth noting that a bullish crossover on the MACD indictor may trigger a short-term buying spree. Otherwise, the price may fall to the $23,700 level during the weekend.

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