Bitcoin (BTC) is not showing any decisive bullish signs even though the cryptocurrency market is back trading in the green on January 10.
The largest cryptocurrency by market capitalization dropped considerably during the first two weeks of January, falling to as low as $40,500 before jumping back to around $41,500.
According to crypto experts and analysts, the drop caused a breakdown below the 0.618 Fib retracement support level and the wicklows of last December 2021.
The bitcoin price drop also affected the whole crypto market. The market saw around $230 billion gone between January 3-7, 2022, falling from $2.25 trillion on December 31, 2021, to $1.9 trillion on January 7, 2022. As a result, the total crypto market cap now is $1.97 trillion, as per CoinMarketCap.
The two largest cryptocurrencies by market cap, Bitcoin and Ethereum, got hit the most. Following this, crypto analysts claimed that the crypto market crash is the direct effect of the Federal Reserve’s efforts, which were implemented in the face of rising inflation.
Furthermore, experts like Alex Krüger said that Bitcoin might fall to as low as $30,000 if the U.S. inflation data that will be released on Wednesday come any higher than forecasted.