Bitcoin (BTC) dips below $16,000 as market woes mount
Bitcoin (BTC), the largest cryptocurrency by market capitalization, fell even more, breaching the $16,000 mark on November 21. That could continue in the volatile market as investors begin to lose faith.
BTC fell to a daily low of $15,480 yesterday, its lowest level since November 2020, with bulls rushing to consolidate their positions and rally back, where it is currently trading at $16,049.60.
According to the data from CoinMarketcap, the token is currently showing losses in both daily and weekly charts. But 24-hour trading volume is up around 9% to $28.466 billion.
Additionally, the global cryptocurrency market cap is trading sharply lower at around $795.94 billion, down around 2% in the last 24 hours. While 24-hour trading volume increased by nearly 18% to $198.83 billion.
Near $16,000, Bitcoin is receiving rapid technical assistance, and candles above this level suggest a bullish reversal is possible. Due to this fact, it can be speculated that the uptrend will continue until it reaches resistance levels of $16,500 and 17,180 due to increased buying pressure.
Factors Dragging Bitcoin (BTC) Down
The continuing effects of the collapse of FTX continue to ripple across the market, leaving very few tokens untouched as the cryptocurrency market plunged even further into “Crypto Winter.”
Cubics Analytics creator Caleb Franzen also commented on the bounce in the price of Bitcoin after it hit a daily low. He noted that he had anticipated the prospect of further lows.
But given the current situation, investors are finding it difficult to adjust to both new highs and new lows. As much as Bitcoin tries to tackle its problems, such as security measures, people are still skeptical.
Bitcoin is still struggling to keep up with demand, and while there are several reasons behind that, one theory in particular has stood out. According to Santiment, this may have been caused by FUD – Fear, Uncertainty, Doubt – which occurred when traders lost faith in centralized trading platforms after the FTX debacle.
Since the FTX cryptocurrency has collapsed since November, fears of contagion have destroyed more than $200 billion worth of cryptocurrency. This is mainly because most investors liquidate their futures positions to ensure that they can withdraw the remaining funds and utilize all of their portfolios.
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