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Bitcoin Price Prediction: How Low Can BTC Crash to?

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Bitcoin price broke its consolidation phase as investors continued to worry about the rising interest in the US continue. The BTC/USD price crashed to a low of $18,600, which was the lowest level since September 22nd of this year. It has crashed by more than 60% this year.

Crypto crash continues

Bitcoin price has been in a tight range in the past few weeks as investors wait for a new catalyst. During this time, it hovered between the important support at $19,000 and resistance point at $20,000.

This consolidation ended on Thursday as investors focus on the latest Federal Reserve minutes data. The minutes showed that Fed officials were concerned about high inflation. As a result, officials warned that the bank will continue hiking interest rates.

Economists expect that the Fed will hike interest rates by 0.75% in the upcoming meeting in November. They also expect that the bank will increase interest rates by 0.50% in December. As a result, there is a likelihood that the official cash rate will end the year at over 4%.

The next key catalyst for the Bitcoin price will be the upcoming US consumer price index (CPI) data. Economists expect that the headline CPI rose by 8.1% in September. Core inflation, which excludes the volatile food and energy products, rose by 6.5% during the month.

If analysts are correct, the headline and core inflation will be much higher than the Fed’s target of 2.0%. Therefore, if the estimate is correct, the Fed will likely continue hiking interest rates in the coming months.

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Bitcoin price also crashed as the fear and greed index crashed to the extreme fear level. At the same time, the VIX index, which measures volatility, rose to a high of $33. This is a sign that investors are getting more fearful.

In addition, cryptocurrencies like Litecoin, MATIC, JasmyCoin, and Polkadot also crashed.

Bitcoin price forecast

The four-hour chart shows that the BTC price has been in a strong bearish trend in the past few days. It has dropped from a high of $20,500 to a low of $18,581. The coin moved below the lower side of the ascending channel shown in black. It is also below the 25-day and 50-day moving averages.

Therefore, there is a likelihood that Bitcoin price will continue falling as sellers target the next key support level at $15,000.

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