Bitcoin (BTC) fell to a three-month low on Sunday after crypto analysts warned that price charts were sending bearish signals.
- At press time, the bitcoin price was around $34,500, down 3.8% in the last 24 hours.
- The BTC price has fallen for four straight days.
- Early Sunday, the largest cryptocurrency slid to $33,710, its lowest level since Jan. 24.
- If the price falls below $32,951, it would hit a new low - since July 2021.
- Bitcoin had mostly held between $35,000 and $46,000 in recent months, so the recent price drop could mark the beginning of a new market trend.
- Popular price chart indicators trended downward late last week as the bitcoin price broke below a three-month rising trend line.
- A report from the U.S. Department of Labor on Friday showed that job growth remained robust last month, at levels that should continue to worry the Federal Reserve about an overly tight labor market. As more employers compete for workers, wages could rise, which would increase inflationary pressures and force the Fed to tighten monetary conditions more quickly. Recently, bitcoin (as well as stocks) has reacted negatively to more aggressive Fed action.
- Some traders may have been rattled by data showing that the Terra blockchain's stablecoin, UST, briefly lost its peg on Saturday. The Luna Foundation Guard, which maintains a standby reserve that is deployed when the "algorithmic stablecoin" falls below $1, held about $3 billion worth of bitcoin last week.
- The all-time high, reached in late 2021, was $69,000, so a price drop below $34,500 represents a correction of more than 50%.