Bitcoin price fell to a three-month low, charts were sending bearish signals

Bitcoin price fell to a three-month low yesterday, just days after crypto analysts warned that the price chart is sending a bearish signal. Bitcoin price is around $34,010 at press time, down 3% over the past 24 hours.

bitcoin-price-fell-to-a-three-month-low-charts-were-sending-bearish-signals

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price has fallen for four consecutive days

Earlier yesterday, the largest cryptocurrency fell to $33,710, its lowest level since January 24. If the price falls below $32,951, it will hit a new low – since July 2021.

Bitcoin has mostly been between $35,000 and $46,000 for the past few months, so the latest drop could mark the start of a new market trend. Popular price chart indicators turned bearish late last week, when Bitcoin price broke below a three-month uptrend line.

A U.S. Labor Department report on Friday showed that employment growth stayed robust last month, at a level that should continue to worry the Federal Reserve about a too-tight jobs market. As more employers compete for workers, wages might start to escalate, adding to inflationary pressures and forcing the Fed to tighten monetary conditions faster. Recently, bitcoin has reacted negatively (along with stocks) to more aggressive actions by the U.S. central bank.

Some traders may have been rattled by data showing that the Terra blockchain’s stablecoin, UST, briefly lost its peg on Saturday. The Luna Foundation Guard, which maintains a standby reserve that kicks in if the “algorithmic stablecoin” falls below $1, held about $3 billion of bitcoin as of last week.

All-time high reached in late 2021 was $69,000, so a price drop below $34,500 represents a correction of more than 50%.

“With Bitcoin now having retraced all the way down to $33.9k, trader sentiment has fallen to six week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce”, Santiment reported.

bitcoin-price-fell-to-a-three-month-low-charts-were-sending-bearish-signals

As of this writing, Ethereum, the second-largest cryptocurrency by market capitalization, was down nearly 5% over the past day and almost 8% over the last seven days, trading at about $2,549.

Other notable coins also were lagging, according to CoinMarketCap data. ApeCoin (APE) was down 8% over 24 hours (and 32% over seven days) to $11.69, Terra’s LUNA fell more than 15% over 24 hours to $61.68, and Avalanche (AVAX) dropped more than 7% to $52.38 on the day.

The overall cryptocurrency market cap stands at $1.573 trillion, and Bitcoin’s dominance rate is 41.4%.

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