Bitcoin Dips Near $35K as Crypto Market Tumbles; Here Might Be the Cause of Huge Drop and What Analysts Postulate

Bitcoin and altcoins pared off the gains accumulated in the prior day as the cryptocurrency market succumbed to yet another widespread selling pressure. Bitcoin price saw a huge drop as it slid to lows of $35,595 in a matter of hours. Cryptoanalyst and trader, Alex Kruger noticed significant hourly volumes stating ‘’That was the highest hourly volume in BTC of 2022’’.

Altcoins weren’t spared either as the largest altcoin, Ethereum touched lows of $2796. The majority of the crypto assets, especially in the top 100 are trading presently in red with several recording significant losses. Binance Coin (BNB), Solana (SOL), Cardano (ADA), XRP (XRP), Shiba Inu (SHIB), Dogecoin (DOGE), and most altcoins have experienced pullbacks between -7% to -20% in the past 24 hours.

According to CoinGlass, there have been nearly $408 million in liquidations across the crypto market during the last 24 hours. Bitcoin led the liquidation pack at $190 million, followed by Ethereum at $64 million. In the past 24 hours, 104,796 traders were liquidated.

Here Might Be the Cause of the Huge Drop and What Analysts Postulate

On-chain analytics firm, Santiment noted that the recent rise might be shortlived as traders believed it was an anomaly, stating ‘’Crypto traders appear to believe that yesterday’s market-wide price surge was an anomaly, and the short celebration won’t last’’

Bitcoin and altcoins posted significant gains on the prior day with several altcoins marking double-digit gains. The fed had made the move to raise rate hikes in what would be the highest in the last 22 years.

‘’The Fed made their move as expected today, with a 50 basis point interest rate rise. Unsurprisingly, the impact shifted #bullish almost immediately for crypto, just as it did after the March hike. We may have another selltherumorbuythenews scenario’’ On-chain analytics Santiment notes.

The bank of England followed suit increasing its rate hike likewise. According to a crypto analyst, Ali Martinez, Bitcoin risks a trip to $28,500 as ‘’Data shows that Bitcoin broke through a crucial support level at $38,670 where 2 million addresses hold over 1 million $BTC. $BTC needs to reclaim $38,670 as support quickly to avoid these addresses from selling some of their holdings as the next key support sits at $28,500’’.

Likewise addresses holding 1,000 to 10,000 BTC have offloaded or redistributed 70,000 Bitcoin in the past three days while the balance on crypto exchanges increased by 10,000 $BTC.

Bitcoin’s total supply in loss indicator suggests a possible downside move for BTC. According to Ali Martinez, ‘’The last three times more than 8.68 million BTC was at a loss, it marked the end of the downtrend. Currently, 6.90 million #BTC are at a loss’’.

John Bollinger, creator of Bollinger bands believes that the bitcoin and altcoins setup looks rather good but bearish indications still abound saying ”I was going to tweet a bullish on crypto tweet; the setup is good, but there are still too many divergences between btcusd, ethusd, and ltcusd for comfort. Need some convergence to reduce the risk in the trade’’

Bitcoin trades at $36,419 at press time while Ethereum traded at $2,740.

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