Bitcoin Backpedals To $16,000 Level As Crypto Market Loses 6%
Over the past 24 hours, Bitcoin has slipped below the important $17,000 support level as weekly bears have taken the driver’s seat. The most popular cryptocurrency is currently trading at $16,723, down 2.5% over the past week.
There has been significant selling pressure in the cryptocurrency market as a whole, resulting in a 6% correction and a $50 billion loss in the last 24 hours. As a result of the recent price decline, BTC has given up all weekly gains and returned to the red zone.
TradingView and Cointelegraph Markets Pro data followed BTC/USD as it hit multi-day lows on Bitstamp at $16,928. The pair reversed all its gains to one-month highs in response to the latest macroeconomic data and the US Federal Reserve’s decision to raise interest rates.
Similarly, the price of Ethereum has fallen more than 7% in the last 24 hours, according to figures from CoinGecko. The second largest cryptocurrency has slowed down over the past week, trading below $1,178.
Bitcoin and Ethereum accounted for the vast majority of the $117 million in leveraged positions wiped out throughout the cryptocurrency market.
Image: Cryptopolitan
Binance R&D spooks investors
The events surrounding Binance have irked crypto investors, who have been warned against overreacting to “FUD” regarding the exchange and others. Mazars Group, the auditor for Binance’s Proof-of-Reserves, cut ties with the exchange on Friday.
In addition, the current downturn in the crypto market mirrors Wall Street’s severe downturn. Friday marked another 1% drop for the Dow Jones. This price drop is a result of the central bank’s strong monetary policy tightening.
Bitcoin looked set to end the year on a positive note at one point after reacting positively to US inflation and consumer price index (CPI) statistics as well as subsequent Fed interest rate decisions.
The CPI measures price changes for a number of goods. Interest rates increased by 0.1% in November, which is slower than the rate of inflation in October. At the time, the CPI report suggested a price increase of 0.3%.
Crypto total market cap at $764 billion | Chart: TradingView.com
Bitcoin Bulls still retain some edge
On Wednesday, the US Bureau of Labor Statistics reported that based on their criteria, inflation was definitely still rising, albeit at a slower rate compared to last month. This indicates that the Federal Reserve’s hawkish attempts to curb inflation have so far been successful.
Jim Wycoff, an analyst at Kitco News, stated that despite the continued fall, Bitcoin bulls have managed to preserve a short-term technical advantage despite the alpha coin’s failure to sustain its recent gains.
“Bitcoin-US dollar prices are down in early US trading on Friday, as a result of a typical late-week negative correction after hitting a five-week high on Wednesday,” Wycoff said.
Prices, he continued, remain in an “uptrend on the daily chart, and the Bulls retain a modest overall technical advantage in the near term.”
The foundations of Bitcoin’s economy and market continue to be robust, despite the price of BTC experiencing one dramatic decline after another, with each newsworthy blow to the industry’s major players.
