A complicated weekend for BTC. Cathie Wood, the director of the Ark Invest fund, is still very bullish about the king of cryptocurrencies. Indeed, she estimates that BTC could reach $1.5 million by 2030.
If the week started well with the validation of spot Bitcoin ETFs, the price was rejected at the $49,000 level at the end of the week. It is moving around $43,000, and is down 15% from the peak. It’s the Bitcoin newsletter!
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Bitcoin price falls 6% in 24 hours
There violent fall yesterday caused the price to fall below $42,000. In fact, the price of Bitcoin is drop of 6% in 24 hours :
From now on, the price no longer shows positive performance in a week, or in a month. The course remains in increase of 60% in three months. For their part, the pair BTC/ETH continues to weaken. She drop of more than 4% in 24 hoursand almost 14% in one week.
Blackrock highlights the king of cryptocurrencies
Blackrock is a financial titanit currently manages a little less than 10 trillion dollars for its customers. The asset manager recently saw its Bitcoin spot ETF to be validated by the SEC. In an ETF presentation document, Blackrock highlights the Bitcoin performance since 2013 :
Since 2013, the BTC does not blend in with the crowd. Indeed, it is either thebest performing asseteither theasset which experiences the largest drop over one year. In total, the cryptocurrency market has experienced three bear markets since 2013. A way to prepare future investors for volatility of the king of cryptocurrencies ? In the document, Blackrock also explains that the BTC is a safe haven assetand that it represents the expression of declining trust in banks, governments and fiat currencies (euro, dollar, etc.).
Bitcoin price falls to support at $42,000 in 4 hours
The sellers managed to make drop the price to the support level at $42,000. For the moment, buyers are defending the support at $42,000 :
Buyers have the possibility of reactingbecause despite the recent drop, the price maintains a bullish momentum with ascending lows and highs. If buyers push, the price could return to the next level resistance at $44,000. A resistance that will have to be broken to find the $46,000. On the other hand, a break in the support at $42,000 could bring the price back to the level of next support at $40,500. With the close below 39, the RSI has just validate a bearish divergence. Thus, the price could experience a range phase.
We can clearly see that we are witnessing profit taking after the validation of spot Bitcoin ETFs. Buyers will have to react quickly to avoid marking a local high that could bring BTC below $40,000. To do this, we would have to keep the support at $42,000, and take back the $44,000 as support. Ethereum seems to benefit from speculation around Ethereum spot ETFs which could arrive in May.
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