The Bitcoin price has been on a strong bearish run for the past few months. The digital asset has plunged more than 61% from its highest point this year in March. In the past 24 hours, BTC has dropped by nearly 7%. Its total market capitalization has crashed by more than 7.42% in the last 24 hours to $358 billion.
According to data by CoinMarketCap, Bitcoin has been among the worst-performing digital currencies in the past few weeks. Other poor-performing cryptocurrencies include Cosmos, Ethereum Classic, Cardano, XRP, and BNB, among others.
On Tuesday, September 27, Bitcoin price briefly topped $20,000, its highest level in more than a week, before retracing further. The world’s largest cryptocurrency continues to struggle for direction. It has been trading between $18,000 and $25,000 since mid-June after a crash saw nearly $2 trillion wiped off the entire crypto market since its peak in November.
The decline in the crypto market was highly driven by increased interest rates from central banks. According to the US Federal Reserve, the increased interest rates are aimed at controlling rampant inflation as well as bankruptcies in the crypto market.
Since the start of the new year, digital assets have been closely correlated to US stocks. The tech-heavy Nasdaq and S&P 500 have been under intense pressure due to the increased interest rates, this has filtered through other risky assets including cryptocurrencies.
Bitcoin Price Forecast
The 4-hour chart shows that the BTC price has been struggling to gain direction. It hit an intraday high of $19,238 before retracing further. It is moving slightly below the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) currently stands at 53, indicating that it is neither in the oversold nor overbought region.
Therefore, as inflation concerns continue, the Bitcoin price is likely to continue its bearish trend. If this happens, investors will be targeting the next support level at $18,000. However, a move past the $20,000 resistance level will invalidate this level.