Bitcoin (BTC) as well as most other altcoins are falling below overhead resistance levels. This indicates that sentiment is still negative and that traders are taking advantage of every opportunity to sell.
Philip Swift, Decentrader analyst, stated that the on-chain profit output ratio (SOPR), which aggregates price of purchase and price sold over a period, suggests that traders are selling Bitcoin holdings at a loss.
Another indicator that traders are concerned about is the funding rate, which has fallen further into the negative territory after comments from the U.S. Federal Reserve. After recently reaching the $34K mark, Delph Digital, a crypto research firm, expects Bitcoin to make a lower low.
Cathy Wood of Ark Invest provided a uber bearish long-term projection. According to the report, Bitcoin will reach $1 million by 2030 while Ether ( ETH) will be between $170,000 and $180,000.
Bitcoin seemed to be recovering very well up until Wednesday’s Fed FOMC meeting.
Both Wall Street and Bitcoin plunged immediately after the meeting. Powell blamed demand and supply imbalances for the fact the CPI rate was well above the Fed target of 2%. The Chairman stated that the Fed would be shifting away from an extremely accommodative policy to one that is substantially less accommodating to become a policy that is not accommodative over time.
However, this wasn’t the only issue causing market turmoil. Russia’s central bank voted in favor of blanket bans on cryptocurrency in the sector. Vladimir Putin stated that Bitcoin mining could give Russia competitive advantages and that they were already well-positioned. Soon thereafter, the Financial Ministry of the country proposed to regulate and not ban the industry.