Bitcoin Shows Resilience Despite a Sharp Dip while US GDP slows down
On 27th April the Bitcoin price hit $29,359 when the Wall Street market opened. While at the same time the US Gross Domestic Product (GDP) growth rate was way lower than expected. This showed that their economy was slowing down.
KEY TAKEAWAYS
- Despite the slowing US GDP, Bitcoin was able to rise from a sharp dip.
- BTC needs to hold its value at $28,200 for potential longs and reach the next high value.
Amidst the news about the GDP of the States, Bitcoin was slowly recovering from the drop in its price below $30K. This shows the slowing down of the U.S. economy did not have any effect on the growth of Bitcoin.
The US GDP is falling down
The US GDP growth rate was only 1.1% falling short of predictions. Even though it is an important issue, it still didn’t have much impact on the price of Bitcoin BTC. During that time the growth of BTC had remained stagnant after experiencing flash volatility the day before.
The flash volatility of Bitcoin led to the liquidation of £300 million in long and short positions. This was probably due to the claims that Mt Gox. and the US government Bitcoin had left their wallets.
Although there the price of BTC rebounded that recovered some of the losses, BTC was unable to reach $30,000 due to the lack of a suitable trigger, as macro data failed to provide any significant direction.
Financial commentator, Tedtalksmacro wrote on Twitter that growth expectations were falling fast.
While gold bug Peter Schiff predicted that inflation would continue due to the Federal Reserve’s actions. He also added that the Fed has already lost its war against inflation. The next move would be to create even more inflation to rescue the economy.
Recovery in the BITCOIN prices
Fortunately, despite a sharp dip, Bitcoin was able to recover soon creating a kind of ripple effect for altcoin as well. The short-term price targets for BTC were bearish as per the traders.
The CEO of trading firm Eight, Michaël van de Poppe highlighted the upside and downside levels close to the current spot price of around $29,000. He further added that BTC needs to hold its value at $28,200 for potential longs and reach the next high value.
Some pointed out that the BTC price has returned to the same level it was at 24 hours.