Why Bitcoin Price Fell Suddenly ⬇️
The pre-halving correction in Bitcoin price coupled with macro and geopolitical factors pulls down BTC price, with no major buying from whales and large investors.
Coinglass data shows more than $330 million were liquidated across the crypto market amid this strong correction. Of these, $260 million long positions were liquidated and nearly $70 million short positions were liquidated on Tuesday.
Bollinger bands (blue) indicator reveals BTC price is in a downside trend, failing to break above the 20-simple moving average (orange). Ichimoku Cloud shows price continue to move under support and the selling pressure is rising as trend reversed, with the cloud widening.
Popular analyst Michael van de Poppe predicts a $55K level is likely as BTC price holds up on support after a lower timeframe rejection. However, he believes Bitcoin will hold near current levels and start a slow upward momentum. The bearish divergence stays valid as consolidation for the post-halving rally builds up.
The global macroeconomic events caused US dollar index (DXY) to climb above 106.23, continuing to rise higher. Whereas, the US 10-year Treasury yield jumped to a high of 4.663% today on open. As Bitcoin moves opposite to DXY and Treasury yields, a rise in both DXY and 10-yr treasury yield has caused a sudden fall in Bitcoin price below $62k, triggering a crypto market selloff.
