Bitcoin prices dropped for the sixth straight day on Tuesday. The drop was about 12% relative to the previous week.
The BTC/USD traded at $37.358.00, a drop from the high of $39.394.44 last Sunday.
BTC dropped to its lowest point since February 4, as it neared its $37,200 long-term support. The crypto’s price strength is now fully oversold, with the 14-day RSI tracking at 39, its lowest level in more than three weeks.
The most recent BTC drop on February 21 brought the world’s leading cryptoasset close to $37,000, but a surprise bounce in the late hours Monday saw BTC trade at $38,607.
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According to market statistics, Bitcoin is presently seeing a “tepid” demand, with the asset’s price fluctuating around $38,000, down 44.97% from its all-time high.
On Tuesday, the Bitcoin network had approximately 275K daily active users. The activity levels were significantly lower than their bull market peak, which indicates a decrease in demand for new customers.
Bitcoin Price Drops in Sustained Liquidations
However, Bitcoin’s long liquidations continued, with more than $30 million drained in just one hour, the second-highest hourly amount in four days and the third-highest hourly amount in nearly a month.
The Bitcoin price fall seemed to shake up market participants and the cryptocurrency market; however, some signs of recovery were seen.
BTC trades at $37.792.12, a drop of 1.57% Tuesday. The upside is that the price may reach resistance at $37,800. Next is $38,200. Above that the price could climb to $39,000.
BTC Total Market Cap at $713.045 Billion according to the Daily Chart | Source: TradingView.com
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Bearish Week for Ethereum
Similar to Bitcoin, Ethereum prices were down to start the week, with the world’s second-largest cryptocurrency trading over 9% lower than it was on Monday.
The intraday low for ETH/USD was $2,585.95. This is the lowest point since February 3. This minor bounce has delayed the impending decline cross between the 10-day moving averages and 25-day moving Averages. It was only recently that there were vital signs of rising momentum.
A recovery wave could cause resistance to the market near $2,680. This is the central resistance zone at $2,000. Above which, it could hit $2,880.
Fear Grips Crypto, Ukraine-Russia Tensions Scale
Investors suffered massive losses due to uncertainty and tension between Russia, Ukraine.
Russian President Vladimir Putin granted the OK Tuesday to Russian troops to seize two areas in Ukraine that were reportedly being held by rebels. The West is furious.
Investors continued to steer clear of risky assets during geopolitical tensions. This put downward pressure on Bitcoins and other cryptocurrency.
The crypto community was prompted to unload their “risky” digital assets to safeguard their portfolios from additional price losses.
Featured image taken from Moneycontrol. Chart from TradingView.com