Crypto Crash? Bitcoin And Ethereum Plunge Below Key Support Levels
Portfolio Pulse from Murtuza Merchant
Bitcoin and Ethereum have both experienced significant price drops, falling below critical support levels at $68,330 and $3,460-$3,500, respectively. This downturn is attributed to stronger growth and inflation data influencing market sentiment and expectations for interest rate cuts. Ethereum faces additional challenges with weakened fundamentals and potential overvaluation, while the crypto market adjusts to macroeconomic shifts and a possible change in Federal Reserve's monetary policy.
April 02, 2024 | 5:36 pm
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NEGATIVE IMPACT
Bitcoin has dropped below its critical support level of $68,330, indicating a potential shift in market sentiment and raising caution among traders.
The fall below a critical support level usually indicates a bearish sentiment among investors and can lead to further sell-offs. The macroeconomic factors such as stronger growth and inflation data, along with the anticipation of Federal Reserve's monetary policy, are likely influencing Bitcoin's price negatively in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Ethereum has breached its support range of $3,460 to $3,500, facing challenges from weakened fundamentals and potential overvaluation, with a possible retest of the $3,100 level unless there's a swift recovery.
Ethereum's fall through its support range and the additional challenges from weakened fundamentals and potential overvaluation suggest a bearish outlook. The broader macroeconomic environment and the anticipation of Federal Reserve's policy could further impact Ethereum's price negatively in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 90