The market price of bitcoin (Bitcoin) fell below $39,000 on April 18 in a bearish trend during the Easter holiday. Meanwhile ether (ETH) fell below $3,000 for the first time since mid-March.
The combined crypto market has lost nearly $400 billion since early April, with analysts warning that a “financial markets disaster” could push Bitcoin below $30,000.
Alex Kuptsikevich, Senior Market Analyst at FxPro told Forbes that:
“The signal for a break of the mild uptrend would be a consolidation below the $38,000 per bitcoin level. If the bulls capitulate, the first cryptocurrency could be pushed into the $32,000-$35,000 range without much resistance. A consolidation scenario below $30,000 would require an absolute disaster in the financial markets.”
Investors are gearing up for the coming week
The fall in cryptocurrency prices comes amid a similar fall in US stock market futures over the Easter weekend. Also investors gearing up for key US first quarter earnings reports and speeches federal reserve Politician.
The Fed’s policy to fight US inflation isn’t making markets any less fearful, as the CPI for March posted an 8.5% year-on-year rise, a level not seen since 1981. Fed officials have pledged to do whatever it takes to bring inflation under control, and markets fear these actions could trigger a recession.
CoinGlass data shows that the cryptocurrency market saw a series of liquidations after BTC fell below $39,000 and moved below trendline support. Of these liquidations, 95% of the orders were long positions, with the Okex exchange providing 45% of the total volume.
Funds flowing out of exchanges
The trends have reversed over the last week as traders actively moved liquidity away from exchanges.
According to Glassnode data, $6.5 billion worth of BTC was withdrawn from exchanges in the week of April 11. As more liquidity exited the trading platforms, the emergence of significant selling pressure led to further price action.
Meanwhile, ETH is also facing a supply crisis after traders moved $4.3 billion worth of Ether from exchanges. On top of that, the constant burning of Ether also drains liquidity from the market. These movements can lead to a liquidity crisis and a supply shock.
Arthur Hayes predicts Bitcoin could crash to $30,000
Arthur Hayes, the co-founder of crypto exchange BitMEX, recently said that the price of BTC and ETH could fall to $30,000 and $2,500, respectively, in the next two months.
“Bitcoin and Ethereum will make a good bottom before the Fed acts and reverses policy from tight to loose.”
Hayes wrote a blog postAdd that he is betting on a Bitcoin and Ethereum price “crash” by June.
At press time, BTC is trading just above $39,000, down 7.9% on the week. BTC fell 43.5% from its all-time high of $69,044 on November 10, 2021.
ETH traded around $2,910, down 9.6% on the week. However, Ether is still up 24.1% on a yearly basis. It hit its all-time high of $4878 on the same day as Bitcoin and has since fallen 40.5%.