It’s a tough time for crypto investors today. Targeting $47,000 during the day, the price turned negative again in the evening. Especially minutes before the announcement of the FED Minutes, a great downward movement started around 21:00. We shared that the minutes to be published on our website may lower the price and the details of the explanation.
Why Is Bitcoin Falling?
The announcement of the FED Minutes seems to be one of the main reasons that brought the price down. There have been significant conflicts in price for a few days, albeit in low volume. In this war, where the whales determine the price, the bears have won for now. At the time of writing, Bitcoin continues to find buyers at $ 44,100.
Such a retracement was already expected as the price failed to hold above $48,500. Especially big investors who sell heavy profits at $ 60,000 levels want to return to Bitcoin at a lower price. This is seen as the main reason for the suppressed price. However, as long as the price was at the level of $ 44,000, a significant number of Bitcoin with high profitability were still purchased below this zone. In other words, we can say that the FED minutes were the spark of the decline.
As of 22:00, the minutes of the FED were published, but the fact that such a move came about 1 hour later confirms this. Ethereum eased to $3,600 and BNB to $489. As long as the price holds above $42,000, there is technical recovery potential. However, a retest of the $43,700 region may cause this support to crack. The RSI has slumped as low as 20 on the four-hour chart and it’s on a monthly basis. Considering similar situations in the past, it may be time for a short-term recovery.
In the sudden declines, over $200 million of margin long positions were liquidated. We have seen again how much damage leveraged transactions can cause even in a 4% price movement.