The BTC/USD pair failed to break its previous downward trend and remains bearish, near $31,000. Bitcoin’s price has continued to fall below $32,000. BTC even dipped as low as $29,755, testing the $30,000 support zone.
A recent positive correction occurred over the $31,000 barrier. The price managed to break through the 23.6 percent Fib retracement level of the critical drop from the swing high of $36,059 to the low of $29,755. The bulls were able to break through the $32,000 barrier level. However, they experienced strong resistance near $32,650.
Bitcoin Price Prediction – 50% Fibonacci Retracement
Bitcoin remained below the 50% Fib retracement line of the significant loss from the $36,059 swing high to the $29,755 low. Bitcoin may continue to fall if it fails to break through the $32,400 resistance level. The $30,500 level provides immediate support on the downside. Near the $30,000 level, the next significant support is found. A break and a close below the $30,000 support level could signal the start of a new downtrend. The next significant support level might be $29,500, below which the bears may aim for $28,800. The BTC/USD is trading at 30,643.4 and consolidating between 30,652.7 and 31,808.4.
Bitcoin Price Prediction – Why BTC Could Drop Under $30,000
Bitcoin’s price has now dropped to the low $30,000s, indicating that the market is uncertain. This was preceded by a loss of faith in the market, which resulted in fewer inflows and higher outflows in recent weeks. With the price currently at its lowest point this year, institutional sentiment toward the digital asset has shifted, resulting in major inflows into the digital asset for the first time in weeks. Following several weeks of outflows, Bitcoin suddenly sees inflows. The pioneer cryptocurrency has had inflows of up to $45 million in the last week. On the other hand, institutional investors have been pulling money out of the digital asset to put it in portfolios of other cryptocurrencies.
BTC/USD Price Chart – Descending Triangle Breakout
Stronger US Dollar to Drive Downtrend in BTC/USD
The stronger US dollar, on the other hand, may be the cause of the bearish BTC prices. The US dollar remained near a two-decade high against major rivals on Wednesday, ahead of a key inflation measure indicating how aggressively the Federal Reserve will tighten monetary policy. The dollar index, which compares the currency to six competitors, fell slightly to 103.81 but remained close to the week’s high of 104.49, set for the first time since December 2002. Investors will be looking for signs of slowing inflation in the April consumer price index report, which will show an 8.1 percent annual gain compared to an 8.5 percent rise in March.
El Salvador Buys another 500 Bitcoins (BTC)
El Salvador steals the show yet again by purchasing the dip. For 500 bitcoins, the government paid $30,744. Bloomberg data show that the country already has approximately 2300 bitcoins worth $71.7 million. Furthermore, following the acquisition of additional Bitcoins, the country’s president outlines the country’s plans for a future Bitcoin city. President Bukele illustrated a Bitcoin city in the country on Twitter. The proposed Bitcoin city will be dominated by green (trees) and blue (water) (seas). As a result, this information did not affect Bitcoin prices. Good luck!