The bitcoin price crashed at a low of $ 91,170 on Monday, as the cryptocurrency and the stock market crashed.
Bitcoin (BTC) went into a technical reform, falling more than 16% from its highest level this year.
Its decline was mainly due to potential stability risks in the United States and its impact on the Federal Reserve.
Donald Trump has unveiled extensive tariffs on American, Canadian and Chinese goods. These tariffs will likely expect high inflation as companies are forced to increase prices. For example, the title and core inflation will probably last longer than 2% target.
Tariffs can also affect consumer expenses, which is the largest part of the economy. Many consumers can wait for large purchases until they have more clarity on the result of tariffs and potential negotiations.
The Federal Reserve can maintain high interest rates for a long time, affecting risky property such as bitcoins and stocks.
Bitcoin accident led to a sharp increase in liquidation as the exchanges shut down the leveraged bullish position as it had fallen. According to co -operation, the daily liquidation increased by about $ 400 million, the highest level in the weeks.
There are three main reasons for the price of bitcoin after Monday’s accident. First, it ends the week positively in recent weeks when it falls on Monday.
Second, seasonal data suggests that bitcoin usually grows in February. This has increased in February of the last four years. The average return in February since 2013 is around 14%, the second best month since November.
Third, Donald Trump is likely to use the threat of tariff to negotiate a better deal in his first term. For example, crypto and stock can turn when business talks begin, possibly this month.
Bitcoin price forecast
The daily chart shows that the price of bitcoin has gone sideways in the last few months. It fell at a low of $ 91,170, an important point where it failed to leave below November. This consolidation has formed a rapid flag pattern, including a long vertical line and a rectangle pattern.
The price of bitcoin also remains above the 50-day and 100-day exponential moving average. Therefore, at the end of this month it will be a strong rapid breakout, with the initial target of $ 109,200 a year-by-year high.
