Reasons why BTC price fell to $57,000 today

With the Fed’s interest rate decision expected today, the market turned bearish and Bitcoin crashed more than 5% in a few hours. We examine three different technical indicators that can provide important insight into why the market is currently making new local lows.

Key support levels: $52,000, $48,500

Key resistance levels: $57,500, $63,800

1. BTC price reduction keys support

Bitcoin has been making lower lows since April, confirming a bearish trend, at least in the short to medium term. Unfortunately, this did not change in May as the month started with a new low. BTC just dropped below $57,000 and broke the $58,000 support in the process.

TradingView Chart 2. Momentum remains bearish

Bitcoin reconfirmed the downtrend with today’s price action. Bears are in full control as price appears to be in free fall. If this correction continues for another month, the price may revise $52,000 or even $48,000, which are the next key support levels.

TradingView Chart 3. Weekly MACD Bearish Cross

The warning signs were loud and clear. Earlier this week, the weekly MACD made a bearish cross. This is never a good sign, and the price action quickly reflected this in the last two days. Yesterday, Bitcoin was below $64,000 and today it is at $57,000. This represents a drop of more than 10% in 48 hours.

Chart by TradingView

Looking ahead, as long as Bitcoin stays above 50k, the macro trend remains bullish. If the price drops from this level, even the most bullish bulls will start to sweat. This scenario would likely send many altcoins back to their starting positions from early 2023 before the bull run began.

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