August 12, 2022

The worth of Bitcoin (BTC) is presently buying and selling beneath the $20,000 mark, reaching a low of $19,147 on Saturday, in keeping with statistics from Coingecko.

As the entire cryptocurrency market continues to be pummeled, the value of BTC has fallen beneath its 2017 all-time excessive of $20,000, and the market as a complete continues to endure extreme losses. On the time, reaching $19,500 was known as a “surge” related to potential U.S. regulation of stablecoins.

The BTC/USD pair fell beneath $20,000 for the primary time since December 2020, reaching $19,065 at press time, in keeping with TradingView knowledge.
Since November, the most important cryptocurrency has misplaced greater than 70 p.c of its worth.

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Bitcoin Drop Takes Toll On Market Sentiment

Bitcoin might make historical past this week by closing beneath the 200-week shifting common, a uncommon prevalence. This phenomenon has solely been noticed 5 instances previously. Latest calculations point out that Bitcoin’s 200-week shifting common is roughly $21,700.

All cryptocurrencies are presently within the purple because of a market-wide downturn. On the time of writing, Bitcoin’s market worth has fallen additional beneath the $1 trillion threshold, at $885 million.

As the value of bitcoin continues to say no, a number of market observers have expressed concern that sentiment might proceed to spiral downward as properly.

BTC complete market cap at $368 billion on the weekend chart | Supply: TradingView.com

As jitters elevated following the Federal Reserve’s pronouncement on the inflation outlook, crypto markets suffered the brunt of a serious promoting that started with final week’s surprising Shopper Worth Index (CPI) knowledge.

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Subsequent Backside At $15,500?

Merchants now anticipate that the subsequent Bitcoin low may happen at $15,500. The subsequent BTC backside is perhaps round $19,000 or $15,500, in keeping with Rekt Capital, a cryptocurrency dealer, based mostly on the coin’s historic statistics on weekly shifting averages.

The failure of two main cryptocurrency initiatives, Terra Luna and Celsius, has contributed to Bitcoin’s collapse. Each had been meant to be vital methods of selling the steadiness of digital cash, however they’ve eroded belief within the know-how.

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In the meantime, the chief government officer of Digital Forex Group, Barry Silbert, the CEO of International Macro Investor, Raoul Pal, investor Scott Melker, and others indicated that they’re shopping for the (Bitcoin) dip.

By declaring in a latest tweet that he’s buying Bitcoin, Silbert has someway eased the paranoia of cryptocurrency bulls.

The crypto tycoon has echoed the emotions of MicroStrategy’s CEO Michael Saylor, who lately elevated his optimism regardless of coping with heavy losses.

Featured picture from Forbes, chart from TradingView.com