Bitcoin Plunges: Bubble Warning!

Sudden "bubble" warning! Bitcoin plunges below $67,000

On Friday (March 15), Bitcoin plummeted below $67,000 in the short term, hitting a minimum of $66,729. USDT, the world's largest U.S. dollar stablecoin, also decoupled, once falling to $0.9989, and panic surged. Bank of America (BoFA) warns that cryptocurrencies are exhibiting bubble-like aspects.

Bloomberg reports that bets on the Federal Reserve’s easy monetary policy have helped fuel a strong rally in global stocks, bonds and cryptocurrencies over the past few months, but investors are reassessing such gains after recent evidence of persistent inflationary pressures in the United States. bet.

Michael Hartnett, chief investment strategist at Bank of America, said in an interview with Bloomberg TV that the market is showing the characteristics of a bubble amid the record surge of the technology industry’s “Magnificent Seven” and cryptocurrencies. .

The comments sparked a live debate on Wall Street about whether many markets are vulnerable to a pullback. For Bitcoin, supporters pointed to net inflows of approximately $11.6 billion into U.S. Bitcoin spot ETFs and the April halving cycle as fundamental support.

On Thursday, reports showed U.S. producer prices (PPI) rose, raising concerns that the Federal Reserve's campaign to control inflation is far from over.

Tony Sycamore, market analyst at IG Australia Pty, wrote in a report that Bitcoin was “undermined by gains in U.S. yields and the dollar following the PPI inflation data.”

In the Asian market on Friday, the USDT stablecoin once fell to $0.9989, but then quickly rebounded to $0.9999.

Analyst: Bitcoin 4-hour RSI bearish divergence, may plummet 20%

Analysts at Swissblock, an encryption asset analysis company, said: "No target can continue to rise in a straight line, and Bitcoin is no exception. A correction seems to be coming."

According to the technical chart shared by Swissblock analyst Henrik Zenberg, judging from the 4-hour trend, although Bitcoin continues to rise slightly at the high level, the relative strength index (RSI) continues to decline from the high level, showing a bearish divergence of the RSI, implying that the price It could fall, perhaps as soon as within a few days.

But after extending the time period, analysts believe that the correction will only be a small setback before Bitcoin reaches new highs.

If the RSI divergence really succeeds in predicting a Bitcoin correction, where will it fall next?

The forecast point given by Swissblock analysts is between 58,000 and 59,000 US dollars, which is equivalent to a drop of about 20% from the current price, but the analysts also emphasized that "the top of the bull market has not yet arrived."

If Swissblock’s predictions come true, Bitcoin could see its biggest pullback since March 5. Binance quotes show that Bitcoin fell from US$69,000 back to US$59,005 that day, with a difference of nearly US$10,000. If Bitcoin falls back from $73,000 to $58,000, a high-low difference of $15,000 will occur.

CoinDesk pointed out that the sudden surge in meme coins may also be a sign of an imminent Bitcoin correction, because the market behavior of shifting profits away from the broader market and into high-risk tokens is usually the final stage of a cryptocurrency upward trend.

CoinTelegraph senior analyst Rakesh Upadhyay pointed out that judging from the daily trend, although Bitcoin has been moving above the ascending channel in the past few days, the resistance line above the channel is still exerting pressure. If the bulls can push the price above the resistance line, it is expected to challenge the $80,000 round figure.

However, if Bitcoin falls below $70,000 in the short term, it may drop to the support line of the ascending channel. A further break below the support line could accelerate the sell-off. Similar to Swissblock’s view, Upadhyay also predicts that the first important support level will be $59,000, followed by the 50-day moving average of $53,099.

Finally, the bull market is coming. Welcome everyone to join Xiao C’s high-quality circle. Let’s move forward hand in hand. Let’s hold together to face the uncertainty of the future and welcome the bull market together! !

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