Bitcoin slips to $16,800 as global asset prices fall
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(Kitco News) – Global asset prices faced their second straight day of losses on Friday as negative news on the US economy continued to emerge, pushing investors to shed risk further and wait for more favorable market conditions.
The S&P, Dow and Nasdaq all closed the day lower, down 1.11%, 0.85% and 0.97% respectively, resulting in the second straight weekly loss for the US stock market.
Data from TradinView shows that the Bitcoin (BTC) price was sold around as markets in the US opened, plunging from support at $17,400 to a daily low of $16,750 in the afternoon before bulls bid the price back above $16,800.
BTC/USD 4-hour chart. Source: TradingView
Despite the spike in volatility, little has changed in the macro picture for Bitcoin at this point, as it is still trading within the range it has been trapped in since early November. Kitco’s senior technical analyst referred to the morning dip as “a routine downside correction late this week after reaching a five-week high on Wednesday.”
According to Wyckoff, “Prices are still in an uptrend on the daily chart,” and “Bulls still have the slight overall technical advantage in the short term.”
Crypto Twitter turns bearish
As a result of Bitcoin’s struggles over the past couple of days, the mood on crypto Twitter has turned bearish, with many now speculating on the possibility of a reduction to the lower support levels of $15,600 and $14,600.
This scenario has worked well for the past few weeks.
We have “almost” reached the 0.5 Fib line.What comes after that?
IF $BTC can’t hold $17,000, get ready for $15,600 or even $14,600.It is what it is, but see it as a chance to buy incredibly cheap. pic.twitter.com/jPV5WmDjOl
— 𝕄𝕕𝕣𝕚𝕚𝕒𝕒𝕒𝕚𝕖𝕖 🧲 (@el_crypto_prof) 16 December 2022
But not everyone has taken a negative perspective, including crypto trader StanTrader, who posted the following tweet highlighting a potential “swing long” play for BTC.
Swing long $BTC
Let’s see how it goes pic.twitter.com/CSEb5Tk1eb— StanTrader (@Stanley_Trader) 16 December 2022
Altcoins experience heavy losses
Altcoins largely followed Bitcoin’s lead lower, with less than 10 non-stablecoin tokens in the top 200 seeing gains on the day while the rest experienced losses.
Daily performance in the cryptocurrency market. Source: Coin360
Top performers of the day included Toncoin (TON), Magic (MAGIC) and Request (REQ), which rose 5.74%, 4.31% and 3.31% respectively. The biggest losers on the day were ABBC Coin (ABBC), Energy Web Token (EWT) and TrustWallet Token (TWT), which lost 12.04%, 9.96% and 9.83% respectively.
The total cryptocurrency market cap is now $822 billion, and Bitcoin’s dominance rate is 39.6%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
