Bitcoin Could Plunge to $26K If This Pattern Plays Out

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Bitcoin Could Plunge to $26K If This Pattern Plays Out
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This scary technical pattern could send the Bitcoin price to $26,000

The largest cryptocurrency has had a rough start to the week, plunging below the $40,000 level for the first time since mid-May on Monday.

According to a report by Coinglass, roughly $439 million worth of cryptocurrencies has been liquidated over the past 24 hours, with long positions accounting for 88.03% of the wipeout. Traders of Bitcoin futures parted ways with $160.19 million. The Federal Reserve's hawkish U-turn has reignited the dollar rally while simultaneously exerting pressure on risk assets of the likes of Bitcoin. The U.S. dollar index , which measures the strength of the greenback relative to a basket of foreign currencies, recently spiked above 100, hitting a fresh two-year peak. The U.S. stock market also closed in the red on Monday, with the benchmark Dow Jones Industrial Average index falling 1.89%.

At press time, Bitcoin is trading at $40,121, struggling to recover after recording a string of substantial losses. It is down 41.81% from its record peak.that the largest cryptocurrency keeps trading within the established range, whose lower boundary is fixed at $36,500. If Bitcoin breaks below that level, it will likely lead to significant losses. Conversely, if Bitcoin soars above the upper boundary of $47,500, a new record high could well be within reach, according to Halley.

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