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▲ Bitcoin (BTC), Oil Price Drop / ChatGPT Generated Image
Bitcoin (BTC) price plummeted to its lowest level in a week due to surging oil prices and concerns about an economic crisis in Asia.
According to a report by CoinTelegraph, a virtual asset media outlet, on April 28 (local time), inflation fears swept the virtual asset market as international oil prices surpassed $100 per barrel. Bitcoin showed weakness, falling below the $76,000 support level, in conjunction with the decline in Asian stock markets.
Rising energy prices exacerbate inflationary pressures, acting as a factor that dampens expectations for central bank interest rate cuts. Investors tended to withdraw funds from risky assets and move them to safe-haven assets. In particular, as economic indicators in Asian countries heavily dependent on energy imports worsened, capital outflow in the region accelerated. Experts diagnose that persistent high oil prices are hindering the short-term rebound momentum of virtual assets like Bitcoin.
Technical analysts analyzed that Bitcoin's Relative Strength Index (RSI) is entering an oversold zone. If the downtrend continues, the $74,000 level is likely to act as a new support. However, as long as macroeconomic uncertainties are not resolved, price volatility is expected to remain high for some time. The increase in Bitcoin inflows into exchanges, leading to greater selling pressure, is also adding to the market's burden.
The virtual asset market is closely monitoring geopolitical tensions in the Middle East and changes in the energy market. Warnings are escalating that if oil price hikes become prolonged, a recession crisis could hit the global economy. Bitcoin is facing a critical test to prove its value as digital gold. Investors are preparing countermeasures by resetting their positions based on key economic indicators to be released this week.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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