$200 Billion Exits The Market As Bitcoin Plummets To A Multi-Month Low
21 Gennaio 2022 - 05:00PM
NEWSBTC
Bitcoin, the top asset in the industry has noted a sharp fall in
prices over the last 24 hours. At press time, the king-coin
depreciated by almost over 9.7%. Bitcoin dropped its value by
almost $7,000 and was exchanging hands at $38,233.95. This marked
an almost six-month low for the coin. This price level is the
lowest ever since the first week of August last year. Following
Bitcoin’s price action, altcoins followed suit as a majority of
them were seen trading in the red at the time of writing. The
global cryptocurrency market cap was at $1.95 trillion after a
considerable fall of about 7.7% over the past day. The global
crypto cap hadn’t dipped below the $2.11 Trillion mark in over 3
months now. This major plunge in value across the broader
cryptocurrency market had caused roughly $200 Billion to leave the
market. Ethereum, which is the second-largest cryptocurrency in
regards to market capitalisation also registered a tumble of about
8% in the last 24 hours. Related Reading |TA: Bitcoin Dives
Below $40K, Why Bulls Could Struggle In Near Term What Could Have
Potentially Caused This Big Dump The bears had taken over the
market, however, it isn’t safe to assume that the market would
continue with a bearish outlook just yet. This could also be a
price correction from which Bitcoin and major altcoins might
recover over the upcoming trading sessions. This retracement in
Bitcoin’s prices from $43,000 could have happened for a number of
reasons. Needless to say, crypto markets are volatile, however,
current price movements of the major cryptocurrencies can be tied
to a couple of recent developments in the crypto space. This sudden
substantial sell-off in prices could have been caused due to stock
market weakness after the US Federal Reserve introduced
high-interest rates and tapered the stimulus. The Fed hiking the
interest rates in the form of tightening the overall monetary
policy has, in turn, affected the unregulated market of
cryptocurrencies. The cryptocurrency industry has also suffered the
pangs of other recent regulatory measures. The most recent one is
Russia’s blanket ban which has rocked the global cryptocurrency
market. Other regulatory measures which have been set in motion to
curb the rapid growth of digital asset has also had negative
effects on the prices. Securities and Exchange Commission has
signaled at scrutinising cryptocurrency exchanges. Environmental
factors have also raised eyebrows of regulatory bodies, European
Securities and Markets Authority (ESMA) wishes for the EU to ban
the proof-of-work model. All of the above-cited reasons have sent
shock waves across the crypto industry causing the fear index to
point at 19, a number that corresponds to “Extreme Fear” in the
market. Related Reading | TA: Ethereum Nosedives,
Indicators Show Signs of Larger Downtrend Bitcoin Price Analysis:
Crucial Trading Levels to Watch Out For Bitcoin was priced at
$38,233.95 after the coin nosedived close to 9% at press time. The
asset flashed a death cross, which is considered to be extremely
bearish in nature. The prices were beneath the 20-SMA line,
indicating that sellers were responsible for driving the price
momentum in the market. Source: BTCUSD on TradingView.com The
Relative Strength Index hurtled as it reflected the excessive
selling pressure in the market. Currently, Bitcoin’s RSI was
hovering beneath the 25-mark which meant that the asset was
oversold and undervalued. The support level for the coin stood at
$37,982.40 and a push from the bears could make BTC trade at that
aforementioned level. The Average Directional Index was near the
50-mark, implying a strengthening of the current price trend in the
market. The resistance price level for the coin was $39,829.16.
Featured image from The Motley Fool, chart from TradingView.com
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