Leading cryptocurrency Bitcoin (BTC) especially last week, it fell sharply and pinned below $38,000.
This negative situation experienced by the BTC price may not be temporary, according to experts. Looking at the available data, it seems that this situation may be even worse.
Experts’ Opinion and FED Decision Points to Decline
Famous cryptocurrency analyst Peter Brandt for BTC price in his analysis yesterday your $28,000 emphasized that it is possible.
The development that will make this decline possible may come from the USA and the Federal Reserve. The USA will make a very important economic policy decision on May 4, and all financial markets may react sharply in the coming days.
President Jerome Powell’s monthly 95 billion dollars It is expected to approve the sales program this Wednesday.
The effect of this has not yet been seen in the markets and official confirmation could change everything. This stands as the most important news and development of the whole market for now.
The third important development seems to be related to volume. Famous analyst Matthew Hyland emphasized that the upside buying volume is exhausted.
The analyst pointed to the $20,000 to $30,000 band, emphasizing that for the uptrend to continue, a drop to the high volume points is required. The market’s lack of volume is certainly an important indicator.
Another factor to consider is the movement of illiquid supply. Renowned analyst Michael van de Poppe glassnodeHe emphasized that this indicator of .
Despite the market’s decline, BTC’s the illiquid supply Stating that the price increased, the analyst stated that investors are withdrawing BTC from exchanges. This indicates that despite the decline, the situation is not as bad as it seems.
Another interesting metric for #Bitcoin is the Illiquidy Supply Change.
This number is reaching peak high numbers, which we’ve also seen in 2020 (the build-up).
Ultimately, a large number of coins are ‘illiquid’, which adds to the potential of a possible supply shock. pic.twitter.com/hwASTTdpVz
— Michaël van de Poppe (@CryptoMichNL) May 1, 2022
The last indicator to be tracked is, of course, known as the Fear and Fear and Greed Index.
The index is currently above the value of its traditional financial markets counterpart, which is a good development. However, falling a little below the 28 level had resulted in a reversal before and the same situation can be expected.