Gate.io Blog：The Market Is Slumping Endlessly | Where Is the BTC Turnaround?
【TL; DR】1. With the deepening of institutional participation in the cryptocurrency market, Bitcoin's performance is actually closer to that of technology stocks.
2. This round of decline was mainly caused by the Fed's interest rate hike.
3. On May 4, the Federal Reserve again announced a 50 basis point increase in interest rates, raising the target range of the federal funds rate to 0.75% ~ 1%. On May 6, the market trend reversed rapidly and completely opened the current round of decline cycle.
4. The price of Bitcoin is likely to fall rapidly and test the price level of $30000. The last time Bitcoin fell so far was in June 2021.
5. On May 10, the price of Bitcoin hit the support level of $30000 and then rebounded. Then, El Salvador, the world's first country to use Bitcoin as legal tender, announced that it had bought 500 Bitcoins at an average price of $30744.
6. If more countries choose to hold Bitcoin as a sovereign currency, Bitcoin may change from the current "institutional bull" to "national bull", getting rid of US stocks and going out of the independent market.
Since losing the support level of $35000 on May 8, the price of Bitcoin has not stopped its decline, but further fell and fell below the integer level of $33000 on May 9. It is now reported as $32284. This price is also a new low since 2022, down more than half from the high of $68991 in November last year. There is strong support for the price of Bitcoin in the area of $32000 ~ 35000. Bitcoin has touched this area and rebounded twice since 2022. Due to the current strong market panic, it still needs time to test whether the Bitcoin price can be effectively supported in this round of the downward cycle.
For more information on the specific analysis process, please read this blog：The Market Is Slumping Endlessly | Where Is the BTC Turnaround?
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