The Easter day crash that was remedied by Bitcoin was due to macroeconomic tensions. Because it’s always good to take advantage of these quick bounces
Bitcoin price is moving above the $40,500 level this morning with a peak just under $41,000. Everything seems to be in line with last week’s trend. In fact, last Friday Bitcoin traded just above $40K and today prices are not much different from that level as can also be seen from the chart below.
Everything in order then? Absolutely not, because if the prices before Easter Bridge and the prices following were about the same, then everything in between happened.
The highlight was Easter Monday. Yesterday morning, in fact, the value of Bitcoin rose a step from 38 thousand dollars. The tension continued until around noon, when prices stopped at $39,000. Then, in the evening, prices returned above 40 thousand dollars. In short, Easter Monday was terrible for Bitcoin.
But why has the Bitcoin price recorded such a rapid crash that was followed by an equally sudden surge? Before answering these questions, we would like to point out that operational side A similar move is ideal for all investors who used to look for phases of intraday pullback to buy at low prices, hoping for a price recovery. This operational strategy is a traditional way of trading online (not only on cryptocurrencies).
However, to implement it, it is necessary to have certain knowledge that can be assumed by practicing with the free money offered by brokers such as eToro (here is our full review). To activate an eToro demo account, you do not need to leave the site: just click on the image below.
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Why did Bitcoin crash on Easter Monday?
Bitcoin price started declining pending the publication of the US Consumer Price Index (CPI) on Tuesday’s docket. This market mover failed to reassure investors worried about rising inflation despite a slightly better-than-expected performance. Sentiment has become more negative due to rising geopolitical risks.
The Putin’s statements Regarding the lack of concrete steps forward in the peace talks with Ukraine, it has led to further mistrust. In addition to these two general factors that are inherent in the entire market, the real reason for the collapse in the price of Bitcoin relates exclusively to the cryptocurrency sector. In fact, the decline in BTC increased after the Ethereum developer announced that the move to Proof of Stake would be delayed for at least a few months. This was bad news for the entire cryptocurrency sector, including Bitcoin.
Ethereum clearly suffered the most from the announcement, which posted a sharp 6 percent drop after the announcement. Passage of Ethereum postponed to Proof of Stake. For the record, we specify that this is not a time when development is delayed. The consolation is the fact that the developer has instead confirmed that the process is still in the final step by proposing “stop investing in mining equipment“.
Bitcoin price: what will happen now?
After the rapid decline recorded on Easter Monday and the rapid recovery that occurs today, it becomes necessary to understand what Bitcoin price trend In the near future to understand how to guide your trading strategy.
According to analysts, eToro (here is the official website)The war in Ukraine, rising inflation, and the possibility of other changes in the Federal Reserve’s monetary policy are the three factors that could influence the price direction of Bitcoin and cryptocurrencies this week. Three elements must be taken into account before opening trading positions on digital assets using, if necessary, advanced tools such as Copy trading on eToro Thanks to it, the strategies of the best cryptocurrency traders can be copied.
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Moving forward in the timeframe, it should be borne in mind that next week will be the deadline for US tax returns. It is possible that this will bring some peace of mind to investors given that according to some analysts, the recent declines have also been caused by Traders need to take profits to pay taxes.
As for other market drivers, the price of crypto assets could be affected by the International Monetary Fund’s meeting on the global economy. It cannot be ruled out that interested comments will arrive during this meeting from Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde. we will see.
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