As the crypt space was eagerly waiting for a bull rally, the cryptocurrencies took a u-turn as the market crashed. The crash was led by the world’s first cryptocurrency, Bitcoin as the price took a deep dive trading below $37,000.
At the press time, Bitcoin is changing hands at $36,489 with a fall of 7.95% over the last 24hrs.
The flagship currency is bottoming parallelly with US stocks. The Nasdaq composite index has dropped by 5%, the worst performance since June 2020, and with this Tech Stocks have wiped out hundreds of thousands of dollars.
Since the start of the year 2022, stocks and shares have been wrestling to find a stable price action and this is due to the US Federal Reserve’s hawkish approach toward market policies.
The Fed has raised the interest rate by 50 basis points, which is the first time ever seen since 2000 and this move is due to increased inflation.
Also Read : Bitcoin Price Drops below $37K. BTC Price To Retest $27K Before Bullish Reversal
However, Fed chair Jerome Powell informed that a 75 basis point interest rate hike will not be seen. This news has brought a bit of relief as the market responded positively though it was short-lived.
Bitcoin’s massive decline corresponded with the US dollar index (DXY), where DXY surged to its highest level since December 2002. In the early hours today, the DXY reached 104 surged by 9.65% since the start of the year.
Bitcoin To See Bull Run After $37,500
According to Michael van de Poppe, Bitcoin’s price action defines bulls or bears standing at above $37,500 or below it.
If #Bitcoin wants anything to be bullish, it needs to reclaim the level at $37.5K. Then I’m assuming we’ll test $39K again as there’s a big gap in between. Under $37.5K, nothing to say about bullish perspectives. pic.twitter.com/KTXPdC6XBX — Michaël van de Poppe (@CryptoMichNL) May 5, 2022
Meanwhile, another market analyst pseudonymously known as Rekt Capital took to Twitter to post a chart that says $38,400 is the new resistance level.
#BTC saw another brief recovery back above ~$38400 (red) Red seems to be figuring as resistance Wouldn’t be surprised to see volatility around red throughout May Monthly Close above red is what’s most important to confirm a reclaim of red as support $BTC #Crypto #Bitcoin https://t.co/DFB2YLcaC6 pic.twitter.com/NJfn1y0dHN — Rekt Capital (@rektcapital) May 5, 2022
Also an on-chain data firm, Whalemap points out that “previous whale inflows at $46,551 were serving as an accurate resistance and a temporary mid-term top for Bitcoin’s range.”