Will the drop below $20,000 happen in the next few weeks, or will it bounce back?
After quite a few weaker days, the Bitcoin price suffered another big loss this weekend and fell back to the $27,000 mark. With the exception of short-term losses at the start of the US banking crisis in March, Bitcoin will have a real crisis for the first time in 2023.
The Bitcoin price has suffered bigger losses in recent days, and it fell more sharply after breaching the $30,000 mark. First, the price fell back to the $29,000 mark; in the days that followed, it dipped back down to the $28,000 mark. Resistance was established at this level, before breaking above $30,000.
Over the weekend, the Bitcoin price fell back to the $27,000 mark, more than 10 percent in a few days and the second big drop in 2023. The course imploded most recently at the start of the US banking crisis. After that, however, the price of Bitcoin skyrocketed. at $28,000.
Reasons for the Sharp Drop in Bitcoin Price
One of the reasons for the sharp price decline could be increasing regulatory pressure from the US., which has forced cryptocurrency companies to search for alternatives in other countries and regions. There are also concerns about Bitcoin, as in Texas, for instance, there is a risk of negative regulations for the industry.
The bears were partly expecting the correction in Bitcoin price after the rise above $30,000. A consolidation in the market was overdue and occurred in the last few days. However, a dip below the $28,000 mark came by surprise.
Meanwhile, the bulls are still eagerly awaiting the next meeting of the US Federal Reserve, where further rate hikes will be discussed. This takes place at the beginning of May. For now, the key interest rate is expected to rise again by 0.25 percentage points.
Is A Drop Below $20,000 Expected?
There have been some reports for weeks that another major crash is imminent. The markets are nervous and the failure of major crypto companies could sink the market further.
Basically, the fundamental data for Bitcoin is extremely strong. Hashrate has skyrocketed so far in 2023. Therefore, more increases are expected in the second quarter in the medium term. In general, the sentiment for the course of Bitcoin remains bullish.
Bitcoin (BTC) is trading today, April 23, at US$27,911.31, according to the Live Coin Watch portal. Said price positions it 102% compared to its value 24 hours ago, and 91% compared to the same day last week. The token’s current domain (market capitalization) is US$540,196,481,712.
As of today, CryptoPredictions.com foresees that the price of BTC for today (04.23.2023) will be in the price range of $23,485.174 – $34,537.021. The Bitcoin price is forecast to end today at $27,629.617.
Likewise, the price of BTC is expected to be located tomorrow (04.24.2023) in the price range of $23,730,532 – $34,897,842. Bitcoin is forecast to start at $27,918,273 tomorrow and end the day at $27,918,273.
By Audy Castaneda
