Bitcoin Price Plunges Below $37k for the First Time Since February

The bitcoin price on Thursday plummeted to trade below $37,000 for the first time since February after the USDX surged to the highest level in decades. The BTC/USD fell to a  session low of about $35,700 before recovering slightly to $36,568.

The Bitcoin Price had rallied on Tuesday and Wednesday within an ascending channel formation before plunging to trade several levels below the 100-hour moving average. It has now fallen deep into the oversold conditions of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the bitcoin price seems to be suffering from a strong resurgence in the US dollar. On Thursday, the DXY surged to the highest level in decades following the latest round of the US data. The Federal Reserve on Wednesday raised the base interest rate to 1% up from 0.5%, in line with expectations. However, the rate hike comes at a time when most US data delivered disappointing results with both the ISM Manufacturing and IS Services PMIs missing expectations earlier in the week.

Therefore, the greenback is gaining traction because of a relative spike in risk-off trading as investors move their funds to the US dollar. Moreover, the crypto market has been on a decline overall, adding pressure to the bitcoin price. The International Monetary Fund (IMF) on Thursday also expressed concern around crypto after the Central Africa Republic followed El Salvador’s decision to make bitcoin a legal tender.

Bitcoin Price Technical Analysis (the 60-in Chart)

Technically, the bitcoin price seems to have recently pulled back sharply to complete a downward breakout from an ascending channel formation. This indicates a significant shift in the market sentiment from bullish to bearish.

Therefore, the bears will be looking to stretch the current declines towards $35,705 or lower to $34,694. On the other hand, the bulls will be targeting short-term rebounds at about $37,610, or higher at $38,563.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the pioneer cryptocurrency seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about $34,004, or lower at $31,294. On the other hand, the bulls will look to pounce for profits at about $39,600, or higher at $42,142.

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