Following a huge rise in investor interest in the previous week, Bitcoin (BTC) and other cryptocurrencies are currently experiencing a free fall, with the overall cryptocurrency market declining by more than 3%.
The price of Bitcoin (BTC) has fallen by 4.04% at the time of writing and is currently changing hands at $42,231. With a current market valuation of $825 billion, Bitcoin (BTC) might remain a bit bearish for a while. The RSI is currently hovering at the 30 level and a fall below it will represent an oversold situation.
Bitcoin: 5 day chart. Source: Trading View
BTC Price is trading within a narrow range with bears prevailing currently
The average threshold of a weekly supply zone, or $43,860, has limited the rising potential of the bitcoin price. Given that markets usually don’t wait too long, a pullback to $30,000 for Bitcoin appears likely in the near future. However, some analysts believe that if the ETF mania picks up again, the king of crypto might even reach the $50,000 level. A break and close over $43,860 might put the $50,000 psychological mark within reach.
Crypto analyst Plan B has pointed out that BTC remains the most valued asset and has delivered better risk-adjusted returns than many other traditional assets.
$300 million is being liquidated as Bitcoin has seen a historic recently
Nearly $300 million worth of long bets have been liquidated in the last four hours, according to Coin Glass statistics. This is true for the whole cryptocurrency market, with small-cap cryptocurrencies registering an even steeper decline.
This year has seen a notable surge in the price of bitcoin due to expectations that the first US spot Bitcoin exchange-traded funds (ETFs) will be approved by regulators, potentially opening up new markets for cryptocurrency investors. However, constant delays have resulted in a tepid response from investors and bears seem to have engulfed BTC again. The ETF story has run its course after countless meetings between institutional participants and the US Securities & Exchange Commission (SEC), involving delays and revisions. As a result, the market is now focusing on the deadline of January 2024 for spot ETF approvals.
However, cryptocurrency investors need not be disheartened since in 2021, BTC had hit a record price of $61,000 in mid-summer and had fallen all the way down to $28,000 before rising again to reach the $65,000 level. History has an uncomfortable habit of repeating itself.
This week’s US CPI data is also highly anticipated by investors, and analysts project that the price of Bitcoin could eventually fall to $37,000 if traders wish to exit in light of unfavourable numbers.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
