The crypto market as a whole is once again on a bearish trend, with Bitcoin falling to a multi-month low.
Bitcoin’s price has been on the decline for four consecutive days, breaching the $35K support level. If sellers maintain this decline, the $33,000 support level is the next level to be breached.
Vital Support Level Breached
According to CoinGecko, the most popular and largest cryptocurrency by market capitalization lost 4.5% during the past 24 hours, breaking a vital support level and posting a daily low of $34,405. According to CoinMarketCap data, Bitcoin’s market valuation has dropped to $657 billion. As of March 28, the total had surpassed $900 billion. BTC is currently trading at around $34,515, down about 10% in the last week and 40% year to date.
As a result of a $6,000 loss in just a few days, the Bitcoin Fear and Greed Index reached a level of “Extreme fear”, causing a major shift in thinking. Bitcoin has mostly followed the negative trend in equity markets, as investors react to signs of anticipated interest rate hikes across asset classes. The cryptocurrency market as a whole has dropped by 4.4 percent in the last 24 hours.
No Counter-Trend Signs
“Bitcoin currently offers no counter-trend signs,” Katie Stockton, managing partner at Fairlead Strategies, wrote in a note, “but the equity market appears set for a rebound next week, which we believe will transfer over to cryptocurrencies.”
The majority of Bitcoin’s losses occurred after the Federal Reserve increased the Federal Funds rate by 0.50 percentage points, causing a stock market selloff and essentially promising two more 0.50 percentage point rises.
According to a CoinShares report, institutional investors started selling Bitcoin exchange-traded funds more than a week ago. Bitcoin outflows in the previous week totaled $133 million, the highest level since June of last year.
Alternative coins are also struggling, with red dominating practically all charts. With a daily fall of 4.5%, Ethereum leads this bearish trend. Binance Coin has dropped by a similar proportion and is now trading below $360. Avalanche, Cardano, Dogecoin, Ripple, Solana, Polkadot, NEAR, and Shiba Inu are also in negative territory.
“Until the market begins to look past the influence of the Fed’s quantitative tightening and rate hikes, I believe it impossible for Bitcoin to develop a broader uptrend,” IntoTheBlock’s head of research, Lucas Outumuro, told Fortune last week.