{"id":393890,"date":"2023-05-13T13:06:58","date_gmt":"2023-05-13T13:06:58","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=393890"},"modified":"2023-05-13T14:00:38","modified_gmt":"2023-05-13T14:00:38","slug":"btc-drops-to-two-month-low-following-warning-from-peter-brant","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/btc-drops-to-two-month-low-following-warning-from-peter-brant","title":{"rendered":"Bitcoin (BTC) Drops To Two-Month Low Following Warning From Peter Brandt"},"content":{"rendered":"

The leader of all cryptocurrency Bitcoin has experienced a sharp price drop, falling to a two-month low of $26,378.\u00a0<\/span><\/p>\n

This plunge comes after the tweet from a notable crypto trader, <\/span>Peter Brandt, warning<\/span><\/a> about a potential drop for Bitcoin.<\/span><\/p>\n

This warning was enough to trigger bearish market sentiment among investors and traders. As the price remains unstable at the moment, traders are taking a cautious approach to trading the asset.<\/span><\/p>\n

Liquidations Trigger Bitcoin and Ethereum Price Drops<\/h2>\n

Two of the largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, have <\/span>dropped by more than 4%<\/span><\/a> over the past 24 hours.\u00a0<\/span><\/p>\n

This decline comes in the wake of recent reports that over $142 million worth of cryptocurrencies, including Bitcoin, Ethereum, and even the meme coin PEPE, have been liquidated in the market.\u00a0<\/span><\/p>\n

Bitcoin, in particular, has been on a downward trend since May 10, following a lower-than-expected CPI report that suggested the Federal Reserve may put its rate hikes on hold.<\/span><\/p>\n

After that peak, it is possible that traders started locking their realized profits from the market and began to sell their BTC to avoid loss.\u00a0<\/span><\/p>\n

Besides, a respected and well-recognized commodity trader in the cryptocurrency industry, Peter Brabdt, <\/span>tweeted<\/span><\/a> that a Head & Shoulder pattern is forming on the Bitcoin chart. This indicates a possible bearish sentiment.<\/span><\/p>\n

Furthermore, he stressed that if the pattern formed completely, Bitcoin would plunge. This recent price fluctuation and liquidation have sparked speculations among investors and traders about the future price actions of cryptocurrency.<\/span><\/p>\n

Bitcoin (BTC) Technical Analysis Using Indicators<\/h2>\n

Currently, the 24H trading volume of BTC is down by 24.1%, with an estimated market cap of about $1 trillion. The price of Bitcoin has <\/span>increased<\/span><\/a> by 1.2% in the last 24 hours, with a Dominance of 44.4%.<\/span><\/p>\n

According to the Fear and Greed<\/span> indicator<\/span><\/a>, the Bitcoin (BTC) current market sentiment is neutral, with a reading of 48.<\/span><\/p>\n

\"BTC\"<\/p>\n

The chart above shows that BTC trades slightly below its 50-day Simple Moving Average (SMA). This indicates that the market is experiencing short-term bearish momentum.<\/span><\/p>\n

However, the 200-day Simple Moving Averages suggest that the long-term bullish momentum is still on as the market remains above the moving average.<\/span><\/p>\n

Bitcoin’s Relative Strength Index of 38.28 shows that the bears are building momentum, sending the coin toward the oversold region.\u00a0<\/span><\/p>\n

The Moving Average Convergence Divergence (MACD) confirms the bearish pressure as its trading below the signal line. Also, the histogram shows red below zero, validating bearish movement in the market.<\/span><\/p>\n

Resistance and Support levels<\/h2>\n

\"BTC\"<\/p>\n

Based on the chart above, Bitcoin<\/a> has support levels of $26,703 & $25,946. Similarly, Bitcoin resistance levels are at $27, % $27,744.<\/span><\/p>\n

Currently, the coin is trading at the support and resistance levels of $26,703 & $27,152, respectively. With strong bullish momentum, Bitcoin might rebound and hit the strong resistance at $27,744.<\/span><\/p>\n

Conversely, the bearish trend might continue if the bears increase the pressure.<\/span><\/p>\n

But note that<\/i><\/b> several factors affect the price of a cryptocurrency asset. Therefore, technical indicators should be used in conjunction with other factors.<\/i><\/b><\/p>\n

Read more:\u00a0<\/strong><\/p>\n