Interest rates, China and the Middle East make Bitcoin and crypto bleed – Where are support levels?

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Last Updated on 17 April 2024 by CryptoTips.eu

The European stock exchanges followed their American colleagues sharply lower yesterday and the crypto market also followed suit. Bitcoin plunged to its lowest level in more than a month while many memecoins dropped by double percentages.

The American stock exchanges stabilized lightly in the session of Tuesday evening and even Bitcoin was able to stave off a further slide. It is however clear that markets are worried. At the time of writing, Bitcoin is trading for $62,900.

The reasons for all this panic are threefold. Firstly, there is a growing fear that the Federal Reserve will announce that an interest rate cut is not to be expected over the summer anymore. Secondly, poor economic data from China is making the world fear for a recession in Asia. Thirdly, the knowledge that Israel wants to take revenge for Iran’s attack is making investors jumpy.

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Geopolitics

The Bitcoin halving is coming in three days, but the positive atmosphere on both the stock and crypto exchanges that we saw a week ago has completely changed.

The persistent uncertainty in the Middle East (Israel – Iran) in combination with American inflation, which remains stubbornly high, makes investors wonder whether the long-awaited drop in interest rates will still happen and whether we are counting down to a major regional conflict in the Middle East.

All this causes the prices of certain shares and crypto currencies to fall sharply.

Bitcoin is still making significant gains for the year, but a price of $61,000 (which we saw yesterday) also means that we have already fallen almost 20% since the top of $74,000 in March.

Technical analysts claim that if Bitcoin cannot close above $67,000 again soon, the support zone between $58,000 and $60,000 will be retested.

In the event of a large-scale attack by Israel on Iran, for example, we could immediately look at a price between $45,000 and $50,000 because investment funds would then very quickly reposition their risk.

Trade with a stop loss and be careful out there.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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