- Concerns about potential US interest rate cuts and a decline in ETF inflows have caused the price of Bitcoin to drop to a two-week low.
- Prominent analysts’ technical analysis points to important levels of support and resistance as well as possible bullish divergences that signal potential rebounds.
Recent declines in inflows into specialized exchange-traded funds (ETFs) and mounting concerns about possible interest rate changes by the Federal Reserve have caused Bitcoin to reach a two-week low.
The possibility that the Fed will reevaluate its plans to reduce rates in light of inflation rates that are higher than anticipated has exacerbated this fall, as ETHNews earlier indicated
Federal Reserve Policy and ETFs as Influential FactorsÂ
A significant setback for the most popular digital currency, Bitcoin, experienced a precipitous decline from its near-record height of around $73,798 on March 14 to about $63,165 in this uncertain financial environment.
The value of the larger cryptocurrency market, which includes well-known assets like Dogecoin, BNB, and Ether, has also declined, losing around $420 billion from its peak of $2.9 trillion the week before.
The market’s susceptibility to macroeconomic and regulatory changes is emphasized by this collective slump, which is made worse by the decline in interest in US spot-Bitcoin ETFs, as formerly reported by ETHNews.
Even though there was a lot of excitement around Bitcoin’s January 11 launch, which brought in a net inflow of $11.6 billion, current trends point to investors’ enthusiasm waning, raising questions about the cryptocurrency’s near-term viability. For a deeper dive into these developments, you can check out this YouTube video.
Technical Analysis: Important Levels to Keep an Eye on
Ali Martinez, a cryptocurrency analyst, clarified crucial Bitcoin support and resistance levels on X by stating that “some significant Bitcoin support levels to watch are $61,100, $56,685, and $51,530.”
Conversely, key BTC resistance levels are $66,990 and $72,880.” Through the identification of signals for future recoveries or declines, this approach provides investors with a framework for assessing possible market moves.
Renowned cryptocurrency trader Scott Melker echoed this view when he commented on Bitcoin’s chart patterns on X, stating,
“Confirmed bullish divergences on Bitcoin’s 4-hour and 6-hour charts, as shown in the newsletter.”
He’s adding that finding a bounce and at least a local bottom is, once again, the simplest signal, suggesting possible signs of a market recovery or stabilization.
$BTC 4-HOUR
Nice confirmed bullish divergence here. 6-hour as well. Pointed out in newsletter.
Once again, the easiest signal to find bounces and at least local bottoms.
Watching for potential hidden bearish divergence. Also still not oversold on any time frame above 4-hour. https://t.co/QHoSBkeABr pic.twitter.com/BEYV7A6Dmc
— The Wolf Of All Streets (@scottmelker) March 20, 2024
At press time, in the past day, the price of Bitcoin slipped by 0.54%, landing at $63,527.83. With a further decline of 12.78% during the past week, its market capitalization now stands below $1.3 trillion.