- Bitcoin crashed 10.11% in less than 24 hours last weekend after hitting its all-time high price.
- BTC has been unable to back up past the 50-day simple moving average (SMA).
- The price of BTC is $65,574 today, a 2.1% decrease in the past 24 hrs and a 2.2% decrease in the past 7 days.
- The United States Federal Reserve has left the interest rates unchanged at 5.25% – 5.5%.
Bitcoin Statistics
- Bitcoin Market Cap Dominance: 49.2%
- Bitcoin Market Cap: $1.289 trillion
- Total Supply: 21 million
- Circulating supply: 19.660 million
Bitcoin market cap dominance reduced this week from 49.4% last week due to the bearish sentiment the market experienced last week.
Reports indicate the 10% dump BTC experienced came from Galaxy Digital selling off a huge chunk of their BTC holding. This has further pushed them down on the list of global public companies holding Bitcoin.
Previous Bitcoin Price Analysis
Last week we saw the possibility of Bitcoin further falling to the $62,165 area before a bounce back up. This conclusion was brought upon by the Bitcoin price action (PA) falling below the 50-day simple moving average (SMA).
Over the following days, BTC bulls were unable to push the price above this indicator as it proved to be a formidable resistance.
Traders who Shorted Bitcoin (BTC) from March 15 to March 20, 2024, made some profit from the 10.03% price dump.
Fed Leaves Interest Rates Unchanged, Bitcoin Rallies to $68,000 in 24 Hours
The Federal Reserve Bank on Wednesday, March 20, 2024, announced that they were not changing their interest rates again.
Fed Chairman Jerome Powell further dovishly emphasized that they would be sticking to their forecast of three rate cuts this year, despite the inflation increasing.
The current interest rates of 5.25% – 5.5% are the highest in the past 23 years of American economic history.
The FOMC has left the rates in this range for the past four meetings, with this being the fifth.
Over 2 years, the Fed has hiked interest rates from near zero to the current high numbers.
Bitcoin reacted positively to this news, rallying 12.14% and recouping the previous week’s losses.
Bitcoin Price Looking to Test 200 SMA for a Second Time – Double Bottom or Break Down?
BTC price has been unable to break above the 50-day SMA, which is a concern among investors and traders. It shows a weakness on the part of bulls.
On the lower side, the 200-day SMA has been holding nicely. March 20, 2024, was a dangerous day for BTC, and only the Fed’s good news saved the asset.
If Bitcoin continues the downward trend the 50-day SMA may cross below the 200-day SMA, forming a death cross, which is a confirmation of a full-on bearish market.
Traders can short BTC until $62,000 after which, the asset is expected to bounce off this indicator and test all-time high prices again.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you should not make investment decisions based solely on what you read here.