Bitcoin (BTC) price is facing strong headwinds amid a strong sell-off in the traditional financial markets. The latest economic data has put more rate hikes on the cards. The negative BTC price action has sent most altcoins to their fresh quarterly lows.
On Thursday, BTC to USD price plummeted to $28,300, its lowest level since June 21. This triggered a massive sell-off in altcoins which were already having a weak price action. Till press time, the pioneering cryptocurrency had briefly recovered and changed hands at $28,600.
Why Is Bitcoin Dumping?
The current weakness in BTC can be attributed to many factors. Firstly, it failed to gain strength above the key psychological level of $30,000 even after many attempts. Secondly, the surge in the DXY index has generated some strong headwinds for high-risk assets like equities and cryptocurrencies.
Thirdly, the latest retail sales data and FOMC minutes have put more rate hikes on the cards. These macroeconomic factors have led to a risk-off approach in the markets as investors prefer the dollar as a safer bet. In other news, veteran analyst Thomas Lee has predicted a $180,000 Bitcoin price in case a spot ETF gets approved in the US.
Bitcoin Price Prediction For The Coming Months
There has been a major pullback in equities in the last two weeks. This has affected the liquidity in the crypto markets as well. If the stocks enter into a deeper correction, the BTC price could retest $25,000 support in the coming weeks. On the weekly timeframe, the market structure of the leading digital asset remains bullish.
For Bitcoin price prediction to flip bullish on a higher timeframe, it needs to gain strength above the $31,500 resistance level. This would open the doors for another upward rally with the first bullish target of $35,000. However, the equity markets must remain stable for such a move to occur.
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