The course of the main crypto-coin has fallen sharply in recent days
Over the past 7 days, the value of the main crypto coin has decreased by more than 11%. This is evidenced by data from Coinmarketcap.
The sharp drop in bitcoin occurred on the night of August 17, when the price of BTC fell by about 8% in just 10 minutes and reached $25,409. Today, the asset price has risen slightly and is at $25,941.
The founder of Heisenberg Capital, Max Kaiser, believes that the fall in the rate of the first cryptocurrency may be due to an increase in the yield of US Treasury bonds.
“Rising rates will continue to challenge the price of bitcoin with the flow of capital into high-yield instruments,” he wrote.
Market participants, analyzing the reasons for the fall of the digital currency, also pointed out that Elon Musk’s Space X sold its bitcoin assets for a total of $373 million. It is also likely that private investors, having learned about the sale, could start getting rid of their BTC.
Another prerequisite for negative dynamics could be information from the FRS. The protocol following the results of the July meeting speaks of a possible tightening of monetary policy and does not rule out another increase in the interest rate.
According to the well-known cryptanalyst Benjamin Cowen, the fall in the quotes of the first cryptocurrency may continue further. The expert believes that the decline in the cost of bitcoin is in line with today’s trends in the global economy. In addition, Cowen pointed out that the fall of the main crypto coin is recorded every 4 years.
“The fact is that every four years, in August or September, the year before the US presidential election, there is a correction in the American market. And if you look at 2023, we see it too. And bitcoin is correlated with the US stock market indices. Bitcoin crashed 61% in 2019. In 2015, the drop was about 40%. In 2011, we saw a “black swan” at 82.5%. That is, every year before the halving and the American elections, we see the fall of bitcoin, ”said the analyst.
A crypto analyst with the pseudonym El crupto prof believes that the potential oversold BTC is evidenced by the recent sale of the asset, which contributed to the fact that the relative strength index (RSI) was at its lowest level in 20 months. The expert also noted that the bitcoin rate had reached a critical support line, which acted as resistance for almost 12 months.
It is important to take into account such a historical correlation between the decrease in RSI BTC below 30 and further movements in the asset’s rate. The analyst believes that every time the relative strength index is below this limit, the cost of bitcoin rises in the range from 28% to 60%.
