The Bitcoin exchange rate falls for a fourth day; Falling back below the $ 20,000 level

Bitcoin fell back below $ 20,000 on Tuesday after having its strongest run in more than three months last week, when a rise in the dollar rippled through global markets.

The largest cryptocurrency fell as much as 4.2% to $ 19,546, declining for a fourth straight session. It reached $ 22,472 on Friday as risk appetite returned to broader assets. The second largest Ether fell as much as 7.4% to $ 1,053. The MVIS CryptoCompare Digital Assets 100 Index fell 4.2% at one point.

“Expect apathetic back-end volumes and base flows in another summer trading week with CPI likely to be the main event on July 13,” Genesis’ Noelle Acheson and Gordon Grant said in a note Monday. “Despite a small fireworks display around last Friday’s weekly options that saw Bitcoin blow through $ 22,000 and touch the 200-week moving average, with Ether pushing for $ 1,300 in sympathy, the weekend session saw a resumption of choppy, downward-looking price action that has marked in recent months. ”

The dollar jumped on Monday ahead of the CPI, which could provide insight into the Federal Reserve’s potential path to rising interest rates. Bitcoin and other cryptocurrencies have struggled while the central bank works to combat high inflation, and have tended to trade with risk assets over the past few years.

Bitcoin has been trading in range since the sharp fall in June, hovering around $ 19,500, peaking in 2017. If the coin breaks below this level, $ 16,000 to $ 17,000 could serve as the next support level, the Bitcoin area saw as resistance during the early rally early in 2018. Or it could move towards $ 14,000, the coin’s peak in 2019, according to Arcane Surveys.

However, if Bitcoin breaks higher, $ 28,000 could serve as the nearest resistance area, which is the bottom of the coin in 2021, Arcane added.

Still, many investors who look at the room do not feel so bullish. Bitcoin is more likely to fall to $ 10,000, halving its value, than it is to increase back to $ 30,000, according to 60% of the 950 investors who responded to a Bloomberg MLIV Pulse survey conducted 5-8. July. Forty percent saw it go the other way.

“I’m not surprised to see prices fall with commodity prices and the general feeling of weakened growth – money is getting tighter and there is less money to go into crypto,” said Brian Nick, investment strategist at Nuveen, in an interview. “It’s not a shock. There is a lot of volatility. ”

Meanwhile, there is a sense of hodling – or holding on to investments even in tough times – among cryptotrophers. Data on the chain indicate that such investors have not been deterred by recent market dynamics, according to Strahinja Savic at FRNT Financial. The percentage of Bitcoin that has not moved in more than a year reached a record high of 66% in June, and has remained stable at around 65% now.

The “Hodl” mantra has been an important part of the Bitcoin culture, and the data suggests that this dedication to the asset has remained intact, despite the fact that the asset is, “about 70% below the top,” he said.