Bitcoin breaks down below $20k amid recent market pressure
After struggling with recovery for some time, bitcoin (BTC) has continued to lose value and is trading below $20,000 at $19,650. Since mid-January, this is the first time BTC has dropped below this crucial line.
Some 24 hours ago, bitcoin was trading at $21,730. Based on the current BTC prices, this crypto asset lost about 9.2% in 24 hours.
The market charts indicate that BTC has been trading in the red zone for 24 hours. Moreover, the coin’s 24-hour high was just about $21,790, recorded in the early part of the period examined.
Analyzing the past 7-day charts paints a similar picture of continuous price declines. Seven days ago, BTC was trading at $22,370.
Based on the charts, BTC climbed to a 7-day high of $22,600 on March 5, but later continued to trade in the red zone. Between March 7 and 10, BTC continued to plunge, recording more and more declines in the coin’s average prices.
BTC’s most significant price plunges were noted between March 9 and 10, when BTC dropped from $21.7k to $19.9k in less than a day.
Based on the market charts, BTC has, on several occasions, attempted a recovery without success.
Crypto assets are all in the red
The crypto market has dropped this week; technical analysis depicts a strong sell that may run up to the next support level.
BTC’s significant support and resistance level at $18,000 is yet to be broken. A break of the level could open a fall further.
The Moving Average Convergence/Divergence (MACD) indicator shows a sell bias, while the relative Strength Index (RSI) for BTC/USD daily is at 26.94 levels.
Silvergate and SVB issues are the possible reasons
Based on analytics, the current price plunges are just a reaction to the recent negativity surrounding crypto, starting with the implosion of a crypto-favored bank Silvergate. There’s also some ongoing inflationary pressure.
Furthermore, the general sentiment from key personnel in the regulatory space could be building fear in crypto.
Recently, Fed chair Jerome Powell mentioned the possibility of raising interest rates higher.
The CEO of Bank of America predicted that the US would suffer a minor recession, sending warnings that interest rates could remain high till 2024.
Further reports indicate a possible lawsuit alleging that ether and other cryptos are securities. The New York AG filed a suit against KuCoin as it continues to crack down on crypto.
The severe downswing noted in Huobi token a few hours ago was a reaction to the recent suits. All this pressure mounted on crypto at the moment is what might be causing the downtrend.
Crypto community reacts to the price plunge
Despite the ongoing downtrend, some investors are genuinely happy that they get to buy the asset at low prices.
Some even doubt that bitcoin’s recent crash is related to the Silvergate and SVB issues, as many have suggested.