Bitcoin Drops After New Dose of Fear, But Consolidation Here Is Bullish »Crypto Insiders

Bitcoin (BTC) Dropped again yesterday afternoon and last night. We have warned of a possible consolidation phase before, but remember that consolidation just below resistance in an uptrend is usually rising He is. However, this decline was accompanied by the return of a large dose of anxiety.

Bitcoin price drops 3%

Yesterday morning it was Bitcoin price He’s still fighting $46,700. It seemed for a while that the price was about to turn this resistance into support.

By midday, the bitcoin price briefly peaked at $47,000, but the price was rejected there and then started dropping sharply. Bitcoin then dropped to the $46,700 level, but found support near $46,000 last night.

However, Bitcoin failed to hold on to that as well and dropped to $44,800 overnight. Bitcoin then started to rise cautiously again, but the price is yet to cross $45,500 and drop to $45,300 at the time of writing. KuCoin and 41,500 euros in Petavavo† Bitcoin is currently 3% per minute.

Where does the new fear come from?

The bitcoin price drop is associated with red-colored stock markets such as the S&P500. These financial markets received a new blow yesterday pronunciation From Federal Reserve Vice Chair Lyle Brainard:

“The committee will continue to systematically tighten monetary policy through a series of rate increases and begin the process of rapid deleveraging from our meeting in May.”

According to Brainard, who reported that the Fed will raise interest rates more aggressively in May to counter rising inflation. The fear of this has already caused a lot of uncertainty among investors in recent months. Until the FOMC meeting in March, when it turned out that the Fed was still reluctant to make such an increase due to the war in Ukraine.

This may now be about to end. More details about the FOMC’s March meeting will be announced later today. The next meeting of the Federal Open Market Committee will be held in early May. The fear may increase further and spread in the cryptocurrency market once again. It is also possible that the European Central Bank (ECB) will follow suit at some point, given rising inflation:

Eurozone inflation rose to 7.5%, its highest level ever.

Meanwhile, the European Central Bank is still keeping interest rates at negative levels with no plans for normalization.

This is perhaps the biggest separation between monetary policy and price hikes the world has ever seen. pic.twitter.com/RPhn1MsRR4

– Charliebilello April 5 2022

In addition, the tougher sanctions against Russia, which will be imposed after the recent horrific images from Ukraine, are also increasing fear and uncertainty in the financial markets.

Bitcoin accumulation at record level

However, there are also many positive signs on the Bitcoin price, which are especially reflected in the accumulation. This is how Michael Saylor, CEO of MicroStrategy, bought it Recently a mountain of bitcoins† Terra (LUNA) is still huge too buy BTC For his floor cabinets stable currency. According to an On-chain College analyst, the number of addresses with at least 1 BTC contains high all the time It reached 833,242 points. This has been increasing at a rapid pace since the beginning of last month:

Number of titles with at least 1 # bitcoin It achieved an all-time high of 833,242 titles.

This scale has been increasing rapidly since the beginning of February 2022. pic.twitter.com/Vs051qmjqf

– OnChain College (OnChainCollege) April 6 2022

However, the IT Tech analyst reports that he is seeing a huge influx of BTC to exchanges. This could add more selling pressure in the short term:

4167 BTC dollars Streaming to Spot Exchanges 1 hour ago. Some investors may be preparing to sell. Could possibly have some local dives. pic.twitter.com/HgGaStLDqZ

– Information Technology (IT_Tech_PL) April 6 2022

The Bitcoin 2022 event will take place tomorrow in Miami with many big names from the crypto world. It can make a little noise.

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heat map # bitcoin Investor request.

Uses arithmetic signal processing for sequential data provided by Tweet embed†

We are in a bull market, and not many people know this yet. pic.twitter.com/KZHT8v40dL

– Willy Woo (woonomic) April 5 2022