Bitcoin has been facing a downward trend recently as it struggles to break past the $60,000 resistance level. The cryptocurrency’s price has dropped significantly, putting the $28,000 support level under threat. At the same time, daily transactions have also fallen, indicating a lack of interest among traders. In this article, we will examine the reasons behind Bitcoin’s recent price drop and what it could mean for the future of the cryptocurrency.
Bitcoin Price Struggles to Break Resistance
Bitcoin has been struggling to break past the $60,000 resistance level for several weeks now. The cryptocurrency’s price has been fluctuating between $50,000 and $60,000, with no clear direction in sight. As a result, the $28,000 support level is now under threat. The last time Bitcoin fell below this level was in January 2021, when it hit a low of $27,734.
Pre-FOMC Mood Boosts US Dollar
One reason for Bitcoin’s recent price drop is the boost in the US dollar’s value. The Federal Open Market Committee (FOMC) meeting is scheduled to take place in June, and investors are already preparing for it. The pre-FOMC mood has boosted the US dollar’s value, making Bitcoin less attractive to investors.
Daily Transactions Fall
Another reason for Bitcoin’s price drop is the fall in daily transactions. According to a report by NewsBTC, the number of daily Bitcoin transactions has fallen by 36% since the beginning of 2021. This decline indicates a lack of interest among traders, which could be due to the current market conditions.
Conclusion
Bitcoin’s recent price drop and the fall in daily transactions are concerning for the cryptocurrency’s future. The $28,000 support level is under threat, and if it is breached, Bitcoin’s price could fall even further. The boost in the US dollar’s value due to the pre-FOMC mood is also making Bitcoin less attractive to investors. It remains to be seen whether Bitcoin can regain its momentum and break past the $60,000 resistance level or whether it will continue to face a downward trend in the coming weeks.