Bitcoin (BTC), the world’s most valuable cryptocurrency, has performed remarkably well over the past months. Although, the recent upticks in Bitcoin seem to be fading slightly, as it fell below the $30,000 barrier early Thursday morning.
However, the reason can be attributed to the release of the latest UK inflation figures, which were beyond expectations. Meanwhile, the possible rate hikes by the US Fed as well as the US SEC’s increased crackdown on crypto firms were seen as another key factor that has been putting pressure on BTC prices.
Furthermore, Ethereum, the second most valuable cryptocurrency, declined more than 5 percent to $1,956. Apart from this, other popular altcoins including the likes of Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), and Litecoin (LTC) experience several losses on the day. BTT emerged to be the biggest gainer of the lot, with a 24-hour gain of over 8 percent.
After dropping to $28,555, Bitcoin entered the oversold zone, with key technical indicators like RSI and MACD confirming. The four-hourly trend line supports Bitcoin at this level, and a hammer candle implies a weakening bearish sentiment.
A potential bounce could see Bitcoin reach a 23.6% Fibonacci retracement at $29,000, and if surpassed, it may rise to $29,250 (38.2% retracement).
If the uptrend persists, Bitcoin could hit the 61.8% retracement level of $29,700, but a double-top pattern near $30,000 might pose a challenge. If prices fall below the $28,555 support, further selling could push Bitcoin to around $27,500.
Ethereum, the second-largest cryptocurrency, is witnessing a bearish trend after breaking the $1,950. If Ethereum closes above $1,950, it could spark an uptrend with the potential to reach $2,050 or even $2,120.
However, if Ethereum fails to close above the $1,925 level, its price could drop to $1,925.
This article was originally published by CryptoNews.