Bitcoin price continues to reel under the pressure of marketwide turmoil

Bitcoin price continues to reel under the pressure of market-wide turmoil that has caused BTC price to slip more than 10% this week. At the time of writing, BTC is changing hands at $34,394.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price risks $28,000 bottom after worst plunge in 2m

Despite rallying close to $40,000 on Wednesday after easing the belligerent sentiment caused by Fed rate hikes, Bitcoin fell sharply yesterday, bottoming at $35,700 before closing at around $36,500. Today, BTC continues to trade within a similar closing price range, with the entire crypto market going through a shakeup.

According to Coinglass, the total amount of liquidation in the last 36 hours has exceeded $427 million with Bitcoin, Ethereum, STEPN (GMT), and APE leading the way in the carnage following $200 million, $69.18 million, 12 .42 million and 12.24 million dollars in tokens are wiped out, respectively. Overall, 111,762 traders were liquidated.

The crypto sell-off was associated with a strong risk-aversion wave that also rocked the US stock market with equities plummeting, giving investors one of their worst days since. 2020. The cryptocurrency heavily correlated with Nasdaq-100 has dropped more than 5%. Thursday afternoon ended at $12,317.69. The drop was also reflected in major tech stocks including Meta, Amazon, and Apple all falling more than 5%.

The Dow Jones Industrial Average also fell more than 3.3% to close at $32,690 with the S&P 500 falling just over 3.6% to settle at $4,103, marking the second-worst day of this year.

On Wednesday, the Fed raised interest rates by 50 basis points as promised, with the Fed Chair weighing a more aggressive approach to balance sheet reduction. Typically, interest rate hikes can put pressure on growth-oriented stocks because they make earnings less attractive to investors.

Despite Bitcoin’s on-chain accumulation despite harbingers of Fed tightening, Thursday’s sell-off appears to have further deteriorated the cryptocurrency’s technical profile as veteran analyst Peter Brandt warned of a possible fall. BTC drops to $28,000.

Just hours after the price attempted to break and close above the psychological $40,000 level on Wednesday to no avail, Bitcoin has dipped below the $37,500 support. For now, the price is looking at the possibility of a drop to the February low of $34,400 or a deeper drop to the January high of $33,000. Thereafter, the price could easily move to multi-year support at a level of $28,000.

However, there is no guarantee that price can behave that way, especially considering the amount of volatility in the market right now.

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