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Bitcoin Price Risks Massive Fall As Central Banks Sparks Bearish Sentiment?

Central banks across the globe sparks bearish sentiment for Bitcoin price amid plans for aggressive rate hikes due to rising inflation.
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Bitcoin Price Risks Massive Fall As Central Banks Sparks Bearish Sentiment?

Bitcoin’s bullish momentum is waning as central banks across the globe plans to continue raising interest rates this year and discuss a possible ban on crypto during the G20 meeting in India. This puts intense pressure on Bitcoin price, causing price and sentiment to slip from “greed” to “neutral.”

The Crypto Market Fear and Greed Index fell from 60 “greed” to 51 “neutral” within just 3 days after the U.S. Core PCE inflation came in at 0.6% MoM, against market estimates of 0.4%. The inflation data along with a monthly expiry on February 24 caused BTC price pullback to $22,861, just higher above the massive liquidation level of $22,000.

Bitcoin Twitter Sentiment

Major central banks including the U.S. Federal Reserve, the Central European Bank, and the Bank of England plan aggressive rate hikes in March and the coming months. The ECB President Christine Lagarde confirmed a 50 bps rate hike in an effort to return the inflation target to 2%. The Bank of England has also confirmed a 50 bps rate hike next month due to higher energy prices and supply bottlenecks.

The US Dollar Index (DXY) has jumped over 105 from below 103 in just a few days, sparking speculation of a major price dip in Bitcoin price. While the DXY and other data show volatility, the sentiment has already turned negative as crypto market trading volume has declined across crypto exchanges.

Also Read: Ethereum Shanghai Upgrade, Developers Reveal Key Details Ahead Of Sepolia Upgrade

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Bitcoin Price Retest Coming

Bitcoin Price at 4Hr Timeframe. Source: Michael van de Poppe

Bitcoin price falling to support level can witness two expected events. First, whales and institutional investors can once again accumulate from $21.7K for longs. Second, derivates traders are likely to make a more bullish mark.

Popular crypto analyst Michael van de Poppe predicts a rejection at the crucial $23.8K level would indicate another test of the support level. If that sweep happens and we reclaim the level upward, then a rebound to $25K is inevitable and longs are triggered.

BTC price is currently trading at $23,428, moving sideways in the last few days. The 24-hour low and high are $23,165 and $23,654, respectively.

Also Read: Solana Releases Report On Mainnet Beta Outage, Is SOL Price Dump Next?

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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