The world’s largest digital currency is slowly recovering after a sharp fall this weekend.
The price of one bitcoin rose on Sunday afternoon US time to $20,209.70. Thus, it gradually recovered, after it ended on Saturday, and for the first time since 2020, it was below $20,000.
It is retreating further and further from the peak in November when Bitcoin traded over $68,000. On Sunday morning, the price of Bitcoin plunged below $18,000, after the cryptocurrency plunged sharply until Saturday.
Prices in the cryptocurrency market have been mixed recently in line with the turmoil on the exchanges. This week was the worst on Wall Street since the early days of the 2020 coronavirus pandemic.
Change the direction of the currency
$20,000 is seen as a support level for bitcoin, and it was close to the top when bitcoin rallied sharply in 2017. On Saturday, bitcoin fell below this level for the first time since the end of 2020, and continued to decline after Sunday.
The $20,000 level is not that important. More important is to look at the level around $19,600, which is the top of the growth cycle from 2017. That wasn’t before Bitcoin dropped below the top in the previous growth cycle, says Arkan Vettel Lund, analyst.
He calls it a “trend shift” for bitcoin.
Moreover, it indicates the technical levels around $16-17,000 which were when the market recovered in 2017, and $14-15,000 in 2019.
These are two very interesting levels.
I think the price of bitcoin should drop further
Lunde in Arcane predicts Bitcoin price could drop to $14,000.
– It’s a realistic bottom. Then most of the pledged positions are liquidated, he says of investors who borrowed money to invest in cryptocurrencies.
He thinks a lot of people are being forced to sell positions these days.
Lunde says that the next major number from the economy that will affect the cryptocurrency market will be the US inflation numbers due out in early July.
Stop, cut and more falls
The week began on Monday by suspending cryptocurrency broker Celsius, not allowing customers to exchange or transfer cryptocurrency between accounts. The company blamed harsh market conditions when it invested $12 billion in cryptocurrencies, according to CNBC.
The next day, the bad news came when Coinbase, one of the largest cryptocurrency exchanges in the world, announced a massive layoff due to market volatility and great uncertainty.
Also here in Norway, the cryptocurrency exchange announced ferry Staff cuts, according to Scheffer.
According to Bloomberg, Bitcoin has now fallen 13 days in a row.
More than five billion from outside the market
In total, investors have earned $566.7 million from the crypto market in just the past 24 hours, according to Bloomberg, which cited research firm Coinglass for the figures.
This corresponds to NOK 5.6 billion at today’s exchange rate.
In other words, it’s not just the bitcoin price that’s weakening, it’s true of almost the entire market.
The second largest cryptocurrency measured by market capitalization, Ether, has also fallen below the $1,000 support level, dropping a lot in the 1990s, but has since risen to around $1,034.
According to Bloomberg, Alkesh Shah, head of crypto and cryptocurrency at Bank of America, wrote in a note Friday that it is good for a market with such a development after strong growth last year.
Investors are now shifting their focus to projects with clear goals, cash flow and profitability, not just an increase in value.
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