Bitcoin price has fallen and is approaching 3-month lows
𝐓𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐨𝐟 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐦𝐨𝐯𝐢𝐧𝐠 𝐝𝐨𝐰𝐧𝐰𝐚𝐫𝐝𝐬 𝐞𝐯𝐞𝐫 𝐬𝐢𝐧𝐜𝐞, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐡𝐚𝐬 𝐧𝐨𝐰 𝐟𝐚𝐥𝐥𝐞𝐧 𝐛𝐲 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐨𝐧𝐞 𝐭𝐡𝐢𝐫𝐝 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐩𝐚𝐬𝐭 𝐟𝐞𝐰 𝐰𝐞𝐞𝐤𝐬 𝐚𝐧𝐝 𝐢𝐬 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡𝐢𝐧𝐠 𝟑-𝐦𝐨𝐧𝐭𝐡 𝐥𝐨𝐰𝐬.
There has been a broad selloff in cryptocurrencies even as stock markets were rising, which was a bearish sign on crypto, but the blow to risk sentiment we got yesterday from the hawkish surprise in the FOMC meeting minutes has sent crypto even lower.
Although we have medium-term bearish momentum here, it may be that the price is now settling on the support level we see drawn in the price chart below at $42,651 which is quite confluent with the quarter-number at $42,500. I don’t expect the bulls to push the price up much from here, but if we see the price consolidate for at least a few more hours, a breakdown below $42,500 could be an effective short trade entry signal.
𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐇𝐢𝐭𝐬 𝐋𝐨𝐰𝐞𝐬𝐭 𝐒𝐢𝐧𝐜𝐞 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝐢𝐧 𝐃𝐫𝐨𝐩 𝐨𝐟 𝟒𝟎% 𝐅𝐫𝐨𝐦 𝐑𝐞𝐜𝐨𝐫𝐝
Bitcoin extended a weeks-long drop on Friday, falling below $42,000 to levels not seen since September.
The largest cryptocurrency declined as much as 4.9% to $41,008, marking a tumble of about 40% from its record near $69,000 reached Nov. 10. Ether, the second-largest, dropped as much as 9% to its lowest level since Sept. 30. Both of those tokens, as well as others including Binance Coin, Solana, Cardano and XRP are down more than 10% in the past seven days, according to CoinGecko.
The retreat comes after minutes from the Federal Reserve’s December meeting, published Wednesday, flagged the chance of earlier- and faster-than-expected rate hikes as well as potential balance-sheet rundown.
“The Fed’s intention to reduce the balance sheet in Q1 2022 is the primary cause of this sell-off,” Fundstrat strategists said in a note Thursday. “Unfortunately, no immediate support looks likely ahead of September 2021 lows at $39,573, with breaks of that leading down to last summer’s May-July bottom.”
Bitcoin gained about 60% last year, outperforming other asset classes amid a narrative that included institutional adoption, inflation protection and investment diversification. It’s struggled in recent weeks, though, amid a volatile period for financial markets. Spiking inflation is leading central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
“As the crypto market matures, we can see major crypto assets such as Bitcoin and Ethereum increasingly move in tandem with traditional markets including Treasury bonds,” said Ben Caselin, head of research and strategy at crypto exchange AAX.
Also factoring into the declines, according to Todd Morakis, co-founder of digital-finance product and service provider JST Capital: the unrest in Kazakhstan, where a substantial number of crypto-mining operations had gone after China’s crackdown on the practice, and which were already affected by the country’s recent power-supply troubles.
The Bitcoin hash rate, a measure of the network’s computing power, dropped to 176 million terahashes on Thursday from a record of about 208 million on Jan. 1, according to data from Blockchain.com.
𝐒𝐭𝐢𝐥𝐥, 𝐭𝐡𝐞𝐫𝐞 𝐰𝐞𝐫𝐞 𝐬𝐢𝐠𝐧𝐬 𝐨𝐟 𝐚 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐫𝐞𝐜𝐨𝐯𝐞𝐫𝐲:
Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform, said his client base was “accumulating heavily” in the Asia morning, though with a strong preference for Ether as opposed to Bitcoin. And Jeffrey Halley, senior market strategist at Oanda Asia-Pacific, noted that the relative strength index or RSI is “well oversold” and he wouldn’t be surprised to see a bounce back to $45,000.
𝐁𝐮𝐭 𝐢𝐧𝐭𝐨 𝐭𝐡𝐞 𝐰𝐞𝐞𝐤𝐞𝐧𝐝, 𝐰𝐡𝐞𝐧 𝐥𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐜𝐚𝐧 𝐨𝐟𝐭𝐞𝐧 𝐛𝐞 𝐭𝐡𝐢𝐧 𝐚𝐧𝐝 𝐞𝐱𝐚𝐜𝐞𝐫𝐛𝐚𝐭𝐞 𝐩𝐫𝐢𝐜𝐞 𝐦𝐨𝐯𝐞𝐦𝐞𝐧𝐭𝐬, 𝐭𝐡𝐞𝐫𝐞’𝐬 𝐚 𝐫𝐢𝐬𝐤 𝐛𝐨𝐭𝐡 𝐮𝐩 𝐚𝐧𝐝 𝐝𝐨𝐰𝐧.
A break of Bitcoin’s price below $41,000 “could get ugly, with the mid-to-low thirties a possible destination,” said Antoni Trenchev, co-founder of crypto lender Nexo. He added that Bitcoin endured a two-month period of consolidation in the $30,000 to $40,000 range from May to July last year, and “a repeat of history can’t be ruled out as Fed tightening remains the popular narrative.”
- 𝗜𝘁’𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis , and expert opinion before making any investment decisions. Be patient and look long term wisely and never invest more than you can afford to lose.
Trading & Investing both are the master of RISK.
Please comment, like and follow if it was helpful for you.
Thank you for your time.
Have a profitable day.
| Review and analysis by Samadi.Finance |
There has been a broad selloff in cryptocurrencies even as stock markets were rising, which was a bearish sign on crypto, but the blow to risk sentiment we got yesterday from the hawkish surprise in the FOMC meeting minutes has sent crypto even lower.
Although we have medium-term bearish momentum here, it may be that the price is now settling on the support level we see drawn in the price chart below at $42,651 which is quite confluent with the quarter-number at $42,500. I don’t expect the bulls to push the price up much from here, but if we see the price consolidate for at least a few more hours, a breakdown below $42,500 could be an effective short trade entry signal.
𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐇𝐢𝐭𝐬 𝐋𝐨𝐰𝐞𝐬𝐭 𝐒𝐢𝐧𝐜𝐞 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝐢𝐧 𝐃𝐫𝐨𝐩 𝐨𝐟 𝟒𝟎% 𝐅𝐫𝐨𝐦 𝐑𝐞𝐜𝐨𝐫𝐝
Bitcoin extended a weeks-long drop on Friday, falling below $42,000 to levels not seen since September.
The largest cryptocurrency declined as much as 4.9% to $41,008, marking a tumble of about 40% from its record near $69,000 reached Nov. 10. Ether, the second-largest, dropped as much as 9% to its lowest level since Sept. 30. Both of those tokens, as well as others including Binance Coin, Solana, Cardano and XRP are down more than 10% in the past seven days, according to CoinGecko.
The retreat comes after minutes from the Federal Reserve’s December meeting, published Wednesday, flagged the chance of earlier- and faster-than-expected rate hikes as well as potential balance-sheet rundown.
“The Fed’s intention to reduce the balance sheet in Q1 2022 is the primary cause of this sell-off,” Fundstrat strategists said in a note Thursday. “Unfortunately, no immediate support looks likely ahead of September 2021 lows at $39,573, with breaks of that leading down to last summer’s May-July bottom.”
Bitcoin gained about 60% last year, outperforming other asset classes amid a narrative that included institutional adoption, inflation protection and investment diversification. It’s struggled in recent weeks, though, amid a volatile period for financial markets. Spiking inflation is leading central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
“As the crypto market matures, we can see major crypto assets such as Bitcoin and Ethereum increasingly move in tandem with traditional markets including Treasury bonds,” said Ben Caselin, head of research and strategy at crypto exchange AAX.
Also factoring into the declines, according to Todd Morakis, co-founder of digital-finance product and service provider JST Capital: the unrest in Kazakhstan, where a substantial number of crypto-mining operations had gone after China’s crackdown on the practice, and which were already affected by the country’s recent power-supply troubles.
The Bitcoin hash rate, a measure of the network’s computing power, dropped to 176 million terahashes on Thursday from a record of about 208 million on Jan. 1, according to data from Blockchain.com.
𝐒𝐭𝐢𝐥𝐥, 𝐭𝐡𝐞𝐫𝐞 𝐰𝐞𝐫𝐞 𝐬𝐢𝐠𝐧𝐬 𝐨𝐟 𝐚 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐫𝐞𝐜𝐨𝐯𝐞𝐫𝐲:
Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform, said his client base was “accumulating heavily” in the Asia morning, though with a strong preference for Ether as opposed to Bitcoin. And Jeffrey Halley, senior market strategist at Oanda Asia-Pacific, noted that the relative strength index or RSI is “well oversold” and he wouldn’t be surprised to see a bounce back to $45,000.
𝐁𝐮𝐭 𝐢𝐧𝐭𝐨 𝐭𝐡𝐞 𝐰𝐞𝐞𝐤𝐞𝐧𝐝, 𝐰𝐡𝐞𝐧 𝐥𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐜𝐚𝐧 𝐨𝐟𝐭𝐞𝐧 𝐛𝐞 𝐭𝐡𝐢𝐧 𝐚𝐧𝐝 𝐞𝐱𝐚𝐜𝐞𝐫𝐛𝐚𝐭𝐞 𝐩𝐫𝐢𝐜𝐞 𝐦𝐨𝐯𝐞𝐦𝐞𝐧𝐭𝐬, 𝐭𝐡𝐞𝐫𝐞’𝐬 𝐚 𝐫𝐢𝐬𝐤 𝐛𝐨𝐭𝐡 𝐮𝐩 𝐚𝐧𝐝 𝐝𝐨𝐰𝐧.
A break of Bitcoin’s price below $41,000 “could get ugly, with the mid-to-low thirties a possible destination,” said Antoni Trenchev, co-founder of crypto lender Nexo. He added that Bitcoin endured a two-month period of consolidation in the $30,000 to $40,000 range from May to July last year, and “a repeat of history can’t be ruled out as Fed tightening remains the popular narrative.”
- 𝗜𝘁’𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis , and expert opinion before making any investment decisions. Be patient and look long term wisely and never invest more than you can afford to lose.
Trading & Investing both are the master of RISK.
Please comment, like and follow if it was helpful for you.
Thank you for your time.
Have a profitable day.
| Review and analysis by Samadi.Finance |
עסקה פעילה
Market Rank: 1
BTC Price: $41,664
Price Change 24h: $-1,399.11/-3.25%
24h Low / 24h High: $42,205.32/$43,551.83
90d Low / 90d High: $41,237.05/$68,789.63
Trading Volume 24h: $65,576,637,610.19/+47.20%
Volume / Market Cap:0.08187
Market Dominance: 40.06%
Market Cap: $800,968,810,168.77/-1.62%
Fully Diluted Market Cap: $888,911,537,652.46/-1.62%
Yesterday's Change: -0.93%
Yesterday's Volume: $30,208,048,288.93
Circulating Supply: 18,922,406 BTC
Max Supply: 21,000,000 BTC