As of today, Bitcoin had dipped below $40,000 and was trading around $39,000. But the flagship currency has recovered its $40,000. Since the Federal Reserve started raising interest rates in response to high inflation and ongoing geopolitical instability, Bitcoin, Ethereum and the entire Cryptocurrency market have fallen in recent weeks.
At time of reporting, Bitcoin price is changing hands at $40,378 with a 1.71% decline in the last 24 hours
Bitcoin drops at $26k
The recent Bloomberg report reveals that with Bitcoin facing a bearish pattern for more than two weeks, BTC price could drop to $26,000 if a bearish flag technical pattern appears.
As the world’s largest cryptocurrency fell below $40,000 early today, it was one of its lowest levels for the first time since mid-May.
According to Coinglass, a future trading and information platform, approximately $439 million worth of cryptocurrencies has been liquidated in the past 24 hours with long positions positioned at 88.03%. Also, Bitcoin futures traders left with $160.19 million.
Meanwhile, the Federal Reserve’s aggressive turnaround has now propelled the dollar to gain, while at the same time putting pressure on Bitcoin-like risky assets. The US dollar index (DYX) has recently surged above 100, marking another two-year high.
The US Dollar Index (DYX) measures the strength of the dollar against the box of other foreign currencies. The US market also closed on Monday, with the benchmark Dow Jones Industrial Average index falling 1.89%.
Also Read: Bitcoin Price In Footsteps Of Nasdaq 100, What Next For BTC Price?
According to reports, Bitcoin is on the horizon to return to a crucial support level of around $37,500. If bulls fail to find a way to rally from here, that could prove to be a disastrous move for Bitcoin bulls.
Jeffrey Halley of Oanda also believes that the world’s largest cryptocurrency will trade within the set range and that the bottom line is set at $36,500. If Bitcoin manages to rise above this level, the price could hit the $47,500 level again.