The latest negative situation experienced by the BTC price may not be temporary, according to experts. Looking at the available data, it seems that this situation could be even worse.
Famous crypto analyst Peter Brandt emphasized that $28,000 is possible for the BTC price in his analysis yesterday. The development that will make this decline possible may come from the United States and the Federal Reserve. The USA will make a very important economic policy decision on May 4, and all financial markets may react sharply in the coming days.
President Jerome Powell is expected to approve the $95 billion monthly sales program this Wednesday. The effect of this has not yet been seen in the markets and official confirmation could change everything. This stands as the most important news and development of the whole market for now.
The Market is Experiencing a Lack of Volume
The third important development seems to be related to volume. Famous analyst Matthew Hyland emphasized that the upside buying volume is exhausted. The analyst pointed to the $20,000 to $30,000 band, emphasizing that for the uptrend to continue, a drop to the high volume points is required. The market's lack of volume is certainly an important indicator.
Irregular Supply Increases
Another factor to consider is the movement of illiquid supply. Famous analyst Michael van de Poppe emphasized that this indicator of Glassnode says a lot. Stating that the illiquid supply of BTC has increased despite the decline in the market, the analyst stated that investors are withdrawing BTC from the exchanges. This indicates that despite the decline, the situation is not as bad as it seems. Here's Poppe's post:
"Another interesting metric for #Bitcoin is the Illiquidy Supply Change. This number is reaching peak high numbers, which we've also seen in 2020 (the build-up). Ultimately, a large number of coins are 'illiquid', which adds to the potential of a possible supply shock."
Fear and Greed Index Points Good
The last indicator to be tracked is, of course, known as the Fear and Fear and Greed Index. The index is currently above the value of its traditional financial markets counterpart, which is a good development. However, falling a little below the 28 level has resulted in a reversal before and the same situation can be expected.