The cryptocurrency collapse expected for the weekend occurred as rumors about an attack on Iran increased. Bitcoin price lost its initial target of $78,000 and continues to close below $80,000. Although losses in altcoins exceed 10 percent, there is a slight recovery from the bottom as the BTC decline has stopped for now. So is the decline over?
Bitcoin Drop
President Donald Trump’s selection of Kevin Warsh to be the next Federal Reserve chairman also has an impact on the recent decline. hassett And bessent In an environment where names like Warsh It was the worst decision. Negativity in crypto increased after Friday’s statement, as he is a name that does not favor monetary expansion and is expected to delay QE even if he cuts interest rates.
PPI figures, which were well above expectations, were added to this negativity. And the strawberry on the cake was the possible attack on Iran. Trump has taken such unusual steps that if the new Fed chairman rapidly reduces interest rates, this will cause the Fed’s independence to be questioned. The process with Powell and Cook is known to all of you.
Liquidations in the last 24 hours exceeded $2.58 billion. While open positions decreased by 10%, total interest increased by half. If the price decreases while the volume increases, it means there is an escape here. This is exactly what we saw with cryptocurrencies.
Will Crypto Rise on Sunday?
After every oversell, we expect to see a short-term recovery in cryptocurrencies. Even if the decline continues, it is expected that a short-term peak will occur and then the sales will continue with a new wave. This scenario for Sunday CME close can be explained by movement.
So as we move towards the daily close BTC price We can expect it to make a new attempt at around 83-84 thousand dollars. If $80,600 can be maintained as support, gains could increase by Monday and BTC could move to a higher top in the $85-88k range. For now, the most plausible scenario seems to be a recovery to the CME close as we move towards the daily close.
So will the trend change? Bitcoin is now clearly in a downward trend and the level targeted by the bears is 56 thousand dollars.
RIVER continues the day with a 34 percent loss. While Trump’s project WLFI and IP lost 17%, JUP is the leader among the top 100 cryptocurrencies with a loss of 14%.
