After rather weaker days, the Bitcoin price suffered another heavy loss this weekend and fell back to the $27,000 mark. With the exception of the short-term losses at the beginning of the US banking crisis in March, Bitcoin will therefore have a real crisis for the first time in 2023. Will Bitcoin crash to $20,000?
How is Bitcoin performing lately?
The Bitcoin price has suffered heavier losses in the past few days and fell more sharply after rising above the $30,000 mark. First, the price fell back to the $ 29,000 mark. In the days that followed, it actually went back down to the $28,000 mark. Resistance was established at this level prior to breaking above $30,000.
Over the weekend, the Bitcoin price fell back to the $27,000 mark. This drop of more than 10 percent within a few days was only the second major crash in 2023. The price most recently imploded at the beginning of the US banking crisis. After that, however, the Bitcoin price exploded to $28,000.
Why did Bitcoin Price CRASH below 30K?
The correction in the Bitcoin price was partly expected by the bears after the rise above $30,000. A consolidation in the market was overdue and came in the last few days. However, a fall below the $28,000 mark came as a surprise.
One reason for the sharp drop in prices could be the increasing regulatory pressure from the USA. More and more crypto companies are looking at alternatives outside of the US. There are also concerns about Bitcoin. In Texas, the El Dorado for cheap Bitcoin mining, there is a risk of negative regulations for the industry.
The bulls are still eagerly awaiting the next meeting of the US Federal Reserve, where new rate hikes will be discussed. This takes place at the beginning of May. At the moment, the key interest rate is expected to rise again by 0.25 percentage points.
Will Bitcoin CRASH to $20,000?
There have been some reports for weeks that another strong crash is imminent . The markets are nervous and a failure of major crypto companies could further plunge the market.
Basically, the fundamental data for Bitcoin is extremely strong. Hashrate has exploded so far in 2023. We therefore expect further increases in the second quarter in the medium term. Overall, the sentiment for the Bitcoin price is still bullish.