Several factors are currently contributing to downward pressure on Bitcoin’s price. Outflows from Bitcoin exchange-traded funds (ETFs), increasing geopolitical tensions, and rising interest rates are all playing a role in the recent decline observed in the cryptocurrency market.
These Bitcoin ETF outflows suggest that investors are pulling back, possibly reallocating their assets in response to changing market conditions or risk perceptions. At the same time, geopolitical unrest in various parts of the world is adding to market uncertainty, which typically leads investors to shy away from riskier assets like cryptocurrencies.
Furthermore, higher interest rates are making traditional investments more appealing compared to risk-laden options like Bitcoin. This shift is part of why the digital currency’s price is facing downward pressure, as higher yields on safer investments attract more investors.
Bitcoin Price Drops to $63,017 after Peaking at $73,800
Bitcoin’s price has dropped by 13.65% to about $63,017, nearly a month after hitting a new high of approximately $73,800. As of April 17, the trading price of BTC/USD dipped to around $62,622, with its lowest price this month being roughly $62,160.
The recent decline in Bitcoin’s value has been hastened by an intensifying geopolitical conflict in the Middle East. At the same time, the resilience of the U.S. economy has led to expectations of persistently high interest rates, which has reduced the desire for riskier investments like Bitcoin, exacerbating its price fall.
With the Bitcoin Halving event scheduled to occur in just two days, there is speculation about whether Bitcoin’s price will experience another downturn or if it will rebound sharply.
These factors combine to create a tense environment for Bitcoin as market participants watch closely to see how these influences might impact its price in the days leading up to and following the halving.
Bitcoin Triple-Top Pattern Signals Potential 14% Drop
In the past 30 days, Bitcoin has struggled to surpass its record high, failing three times. This hesitancy among traders is common at record price levels where the temptation to take profits or increased selling pressure can cap further gains.
This trading behavior has shaped what looks like a triple-top pattern on the price charts, marked by three roughly equal peaks separated by two smaller dips. This pattern is evident on the BTC/USD daily price chart, indicating a potential breakdown.
According to technical analysis principles, a triple-top pattern is confirmed when the price falls below the support line established at the lows between the peaks. For Bitcoin, this crucial support line is around $63,500. On April 17, Bitcoin was testing this level, trying to close below it.
Should Bitcoin’s price break this support, the expected downward target for April or May would be approximately $54,650, which represents a 14.25% decline from its current levels. Conversely, if it holds above the support level, the price might recover back towards the higher boundary of its current trading range, which is near $70,000.
