Bitcoin falls to $34,000, a three-month low

Bitcoin fell to a three-month low on Sunday. At press time, the price of Bitcoin is $34,315, down 3.8% over the past 24 hours. The news comes days after crypto analysts warned that the Bitcoin price chart is sending bearish signals.

Bitcoin prices have fallen for four consecutive days. Earlier on Sunday, Bitcoin fell to $33,710, its lowest level since January 24. If the price falls below $32,951, it will hit a new low since July 2021.

Bitcoin ’s price has largely remained between $35,000 and $46,000 over the past few months, so the recent price drop could mark the start of a new market trend.

As Bitcoin price fell below a three-month ascending trendline late last week, popular price chart indicators tilted bearish.

A report from the U.S. Labor Department on Friday showed job growth remained strong last month. As more employers compete for workers, wages could start to rise, adding to inflationary pressures and forcing the Federal Reserve to tighten monetary policy more quickly. Recently, Bitcoin (along with stocks) has reacted negatively to more aggressive actions by the U.S. central bank.

Bitcoin 's all-time high at the end of 2021 was $69,000, so a drop below $34,500 would mean a correction of more than 50%. Bitcoin had briefly found support around $36,000, but that support disappeared as thin liquidity over the weekend heightened volatility.

However, Bitcoin liquidations themselves were limited as market sentiment had long expected a larger correction following a turbulent week for stocks. Data from Coinglass showed 24-hour liquidations for Bitcoin and Ethereum at around $80 million.

Popular Twitter commentator Credible Crypto has updated his short-term price forecast, envisioning Bitcoin falling to $29,000, a new low for 2022.

The downward momentum on May 8 was accompanied by news of problems with blockchain protocol Terra, with some traders likely unnerved by the fact that the Terra blockchain’s stablecoin UST briefly decoupled on Saturday. As of last week, Luna Foundation Guard, which held about $3 billion in Bitcoin and had pledged to buy an unlimited amount of BTC to back its USD stablecoin TerraUSD (UST), faced its first major test as market participants sold nearly $300 million worth of UST en masse.

Cryptocurrency analyst Michaël van de Poppe acknowledged that the event “did not excite the market” but classified it as “FUD” (fear, uncertainty and doubt). “Let’s see how the price of Bitcoin reacts as we are currently sweeping all these lows,” he tweeted.