• Bitcoin and Ethereum have fallen to significant resistance levels of $30,000 and $2,000, respectively due to the Federal Reserve’s tightening.
• Bitcoin struggles to maintain the $27,000 mark amid market downturn, with analysts warning of a possible decline to $25,000.
• Despite a drop in market capitalization, Bitcoin’s dominance over altcoins remains close to 46%, indicating continued interest in the leading cryptocurrency.
Potential Pullback Risks as US Economy Teeters on Recession
Bitcoin (BTC) and Ethereum (ETH) have all fallen to significant resistance levels of $30,000 and $2,000 respectively as the Federal Reserve’s tightening could result in a stock market downturn and a recession which could impact all risk assets including cryptocurrencies. Bloomberg senior commodity strategist Mike McGlone observed on April 21 that the yield curve has the highest probability since 1982 of a US recession ending but this could potentially lead to significant pullback risks for cryptocurrencies.
Bitcoin Struggles to Remain Above 27K
On April 22nd Bitcoin was barely managing to maintain $27,000 as another round of losses left bulls with little ammunition. CoinMarketCap data showed BTC just clinging to the $27,000 mark after Wall Street trading week ended on a disappointing note while US equities managed modest gains and Bitcoin continued struggling with analysts warning of a potential decline to 25K.
Dominance Over Altcoins Remains Close To 46%
Despite a drop in market capitalization Bitcoin’s dominance over altcoins remains close to 46%, indicating continued interest in the leading cryptocurrency. This shows that investors are still optimistic about holding onto their Bitcoins even though there is an expected pullback risk due to economic factors such as recession.
Expert Warns Of Massive Correction For Crypto Assets
Expert Elena R warned of massive correction for both Bitcoin and Ethereum if US economy teeters on recession adding that „an overwhelming force of the stock market going down with Fed tightening into recession has potential to lower tide for all risk assets including cryptocurrencies.“ She further added that „Bitcoin and Ethereum may be running into wall of resistance at key round number levels“.
Despite strong performance since start of 2023 both Bitcoin and Ethereum face substantial pullback risks due increased uncertainty relatedto economy teetering on recession. While investors remain optimistic about holding onto their Bitcoins analysts warn of massive correction if stock markets continue downfalling along with Fed tightening its monetary policy which could lead drastic fall in prices for these crypto assets