Bitcoin Price Drops below $37K. BTC Price To Retest $27K Before Bullish Reversal

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Bitcoin’s price continued to fall Wednesday, reaching its lowest position since late February, not content to simply erase its recent gains.

Bitcoin fell 8% in under 24 hours, dipping below $36,000 before stabilising. The crypto market as a whole dropped 7% within the same time period, with Ethereum losing 7% from yesterday’s price and the rest of the top 10 losing between 5% and 9%.

Why BTC Price Dropped Below $37k?

BTC’s price has been stuck in a narrow range with no major price movement, while the top crypto’s price increased sharply in response to a drop in the US dollar and higher stock indexes, although this was short-lived.

According to analysts, about $82 million was lost in bitcoin long liquidations in just two hours, with nearly $63 million lost in just one hour. Long market liquidations were suggestive of the bearish wave that appeared to be sweeping BTC’s charts.

BTC Price Stoop down to $27,200?

Katie Stockton, founder and managing partner of Fairlead Strategies, told CNBC’s Joe Kernen on a recent episode of Squawk Box that she believes the Bitcoin chart is broken and that the flagship cryptocurrency would begin to fall alongside the stock market.

The crypto market is presently “eerily quiet,” according to the expert, who is referring to Bitcoin in particular.

Stockton believes that long side Bitcoin moves have the potential to break through the current support level. She suggested $27,200 as a potential level where Bitcoin will find support as it begins to fall, citing Fibonacci technical levels.

Furthermore, the founder of Fairlead Strategies noted a strong correlation between Bitcoin and the Nasdaq 100 and S&P 500 indices, both of which are now declining, and indicated that Bitcoin should be regarded a dangerous asset at this time because it may follow those stocks. 

In terms of the stock market, she believes that from a technical analysis standpoint, nothing positive can be stated about it right now.