© Reuters. Bitcoin (BTC) Price Hits a Fresh 6-week Low, Analyst Warns More Losses Could Follow
price dropped further on Monday after investors offloaded their holdings in riskier assets due to concerns that the Federal Reserve is expected to adopt an even more aggressive policy in the near future to curb inflation.
The number one cryptocurrency tumbled 3.2% to $38,236, its lowest mark since March 15, while Ether tumbled 4.8% to $2,799.
“Bitcoin looks to be breaking a pivotal minor two-month trend on Friday’s pullback that likely causes weakness down to test January lows,” said Fundstrat technical strategist Mark Newton.
Newton expects Bitcoin to slip to $36,300, saying that a fall below “that level should lead to a full retest of $32,950 without too much trouble.”
Still, Bitcoin remains in the price range of $35,000 to $45,000 in which it has been trading since the start of the year. The cryptocurrency is strongly correlated with the and negatively correlated with the U.S. dollar.
The U.S. central bank is anticipated to raise interest rates in 50 basis-point steps over the following months, affecting certain factors that drove Bitcoin’s gains in recent years.
By Senad Karaahmetovic
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