Bitcoin Price crashed to a minimum of $ 91,170 on Monday, as cryptocurrencies and stock markets crashed.
Bitcoin (BTC) turned into technical correction, falling by more than 16% from the highest level this year.
Its fall was mainly due to potential risks in the United States in the United States and its influence on the federal reserve.
Donald Trump published wide tariffs for American, Canadian and Chinese goods. These tariffs will probably lead to higher inflation, as companies are forced to increase prices. Thus, the title and the main inflation will most likely remain higher than 2% of the target for longer.
Tariffs can also affect consumer expenses, which is the largest part of the economy. Many consumers can wait for large purchases until they become more clarity regarding tariffs and the results of potential negotiations.
The federal reserve can support higher interest rates longer, affecting risky assets, such as bitcoins and shares.
Svanka Bitcoin led to a sharp increase in liquidation, since exchanges closed using a leverse positions when they fell. According to Coinglass, daily liquidation jumped to almost $ 400 million, which is the highest level in weeks.
There are three main reasons why the price of bitcoins can recover after the accident on Monday. Firstly, this, as a rule, ends a week positively in the last weeks, when it falls on Monday.
Secondly, the data of the season show that Bitcoin usually rises in February. It grew up in February for the last four years in a row. The average profitability in February since 2013 is about 14%, making it the second best month after November.
Three, Donald Trump will probably use the threat of tariffs to agree on a better deal than he made for his first term. Thus, crypto and shares can be restored when trade negotiations begin, perhaps this month.
Bitcoin price forecast
The daily diagram shows that the price of bitcoins has moved to the side over the past few months. He fell to a minimum of $ 91,170, the key moment where he did not fall below since November. This consolidation has led to the formation of a bull pattern, including a long vertical line and a rectangular circuit.
The price of bitcoins also remains higher than 50 days and 100-day exponential average. Consequently, this month, he will probably have a strong bull breakthrough, and the initial target goal of the city of US dollars.
