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Bitcoin rout expands $ 30,000 floor as next line of sand | Crypto News

The decline in Bitcoin has pushed it through all the latest levels of technical support, forcing traders to now take in $ 30,000 as the next line in the arena.

The world’s largest digital asset is in its sixth consecutive decline, with tokens falling by about 20% in the last seven days. The November peak is now below 50% and was selling for less than $ 32,970 on Monday, the lowest in July.

The sale of the coin has led to the highest selling since March 2020, based on its Relative Strength Index (RSI) score of 19. Bitcoin is now approaching a $ 30,000 support region, where some analysts see it finding a near-term ground. Assets are considered too much to buy if their RSI crosses above 70 and falls below 30 when it is oversold.

“The 50% drop isn’t as significant as we’ve seen in previous years, but it’s significant now, so it’s a bigger concern,” said Simon Peters, an eToro market analyst. “The actual support level seems to be around $ 30,000, where we tested it in China in May after the Bitcoin mining ban.”

Wilfred Daye, head of Securitize Capital, Securitize’s asset management department, said $ 30,000 is psychologically important, and that Bitcoin should find some support there. But he added that if sales continue to go up to $ 27,000, “miners who entered the bull market early will be in trouble.”

Crypto has exacerbated selling pressure in recent days as traders have signaled hawkish signals from the Federal Reserve, including high-tech stocks as a reason to withdraw risky assets.

Traders often resort to technical analysis for cryptocurrency considering their volatility. And to find out how much the decline has been, keep in mind that traders less than two weeks ago thought of it as a $ 40,000 support level. Bitcoin is now trading at around 15% below that level. Meanwhile, other cryptocurrencies have also fallen, with Ether priced at $ 2,240, dropping significantly from a November high of about $ 4,860.

“The crypto market capitalization has skyrocketed and prices have risen sharply as a result of a modest Fed, and the tightening of the Fed’s path is taking it out of the liquidity system and re-establishing weird values ​​that weren’t worth it. Real use,” he said. Avi Felman, BlockTower Portfolio Manager.

Bitcoin’s 40-day correlation coefficient and high-tech Nasdaq 100 index has reached nearly 0.66, the most data Bloomberg has collected since 2010. A similar correlation with the S&P 500 is also at an all-time high.

Here’s what other marketers have to say:

Leah Wald, CEO of Valkyrie Funds, said: “This sale is largely the result of the introduction of traditional market correction. “This does not mean that this will not happen in the future, but right now, Bitcoin is a risky asset and all other digital assets have historically disappeared as Bitcoin has gone.”

Jon Venverloh, Hypernet Labs COO, Cyber ​​Infrastructure Provider: “Federal interest rate policies, inflation, global supply chain shortages and ongoing unrest are having a detrimental effect on all kinds of markets. Crypto is not immune to widespread changes in investor confidence. and this too will be overcome.
Next, the Biden administration is preparing for the release of an initial government-wide strategy for digital assets and to assess the risks and opportunities for federal agencies, according to people familiar with the matter.

“The market is much more sustainable over the last weekend and negative news like we’ve been seeing in recent weeks,” James Malcolm, head of foreign exchange research at UBS, said over the phone. “And that creates a very unstable environment, because a lot of people who have accumulated coins are starting to come under pressure.”

–With the help of Kenneth Sexton and Olga Kharif.




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