Bitcoin: Cryptocurrency Market Shocked With Crazy Price Swings
Bitcoin has had an extremely volatile week, which made it hard for analyst and investors to predict what to expect in the short term.
On April 26 Bitcoin (BTC) suddenly surged to the $30,000 level after a week of consolidation at around $27,000. On the same day in just under an hour, the digital asset lost 9% from its price and landed at $27,400.
In no time BTC managed to return some of the lost gains and is currently trading at $29,000 with a 24-hour trading volume of around $29 billion.
In the same manner, Ethereum (ETH) tumbled from around $2,000 to $1,800. The altcoin managed to return to its $1,900 level.
These wild swings resulted in $352 million in liquidations in both long and short positions for the past 24 hours.
In 2023, Bitcoin had a strong beginning and initiated a remarkable surge of roughly 90%, elevating the entirety of the cryptocurrency ecosystem.
This price volatility occurred right after the shares of First Republic Bank’s stock dropped to around $8. The crash occurred despite the bank’s efforts to fortify its balance sheet and reduce its workforce in response to a decline in deposits during the first quarter of the ongoing banking crisis in the United States.
READ MORE: Altcoins at Risk: Investment Guru Warns of Regulatory Landmines and Excessive Speculation
What to expect?
The possibility of a US Federal Reserve interest rate hike and the FOMC’s decision could be influenced by the release of upcoming economic indicators, such as PCE, GDP, and jobless claims. A pause in the interest rate hike announced by the Fed Chairman may result in Bitcoin’s price surging even higher.
On the other hand, if there is a hike announcement, it might have already been factored into the market, and it would validate that the “sell in May and go away” approach may not be successful in 2023.
The 1-day technical analysis from TradingView shows an extremely bullish santiment, as the summary and the moving averages point to “strong buy” at 15 and 13, respectively.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
