Bitcoin, Ethereum, and Binance Coin saw big losses in the past day after a successful February. Data from Coingecko and Coinmarketcap, supported by Binance, reveals that the overall cryptocurrency market value fell by around 7.7% to about $2.5 trillion during Tuesday’s early London trading.
Due to increased cryptocurrency ups and downs, over $526 million got liquidated in the last day, with more than $442 million belonging to long traders. Bitcoin’s USD derivative daily chart shows signs of short-term weakness, slipping below the support range of $64,500 to $65,266 in the past 24 hours. Consequently, the next few weeks might bring volatility for Bitcoin and the entire crypto market.
Federal Reserve Interest Rate Announcement Looms
On Wednesday, all eyes turn to the United States Federal Reserve as they prepare to reveal the eagerly awaited benchmark interest rates. Recent Consumer Price Index (CPI) data has shown signs of persistent inflation, leaving economists speculating on the Fed’s next move. While forecasts anticipate the Fed to maintain the 5.50 percent interest rate, a decrease is not expected.
Despite predictions, uncertainties linger as Fed commissioners express hesitancy regarding interest rate hikes. This uncertainty has prompted cryptocurrency traders to de-risk their positions to prevent forced liquidations.
Following months of notable gains, propelled by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, a period of cooling off was anticipated to facilitate a healthy market correction.
Renowned crypto analyst, Ali Martinez, forecasts that Bitcoin’s price is likely to stabilize around $61,100 in the coming weeks. In the event of a sustained sell-off, Martinez believes that the support range between $51,530 and $56,685 will remain intact.
Some of the key #Bitcoin support levels to watch are $61,100, $56,685, and $51,530. On the other hand, critical resistance points for $BTC stand at $66,990 and $72,880. pic.twitter.com/VUjzyf2xVm
— Ali (@ali_charts) March 19, 2024
Recently, the altcoin market and meme coin industry have seen substantial increases in value. The surge in new meme coins led to expected profit-taking, triggering a widespread sell-off of cryptocurrencies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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