The price of Bitcoin (BTC) is currently trading below the $20,000 mark, reaching a low of $19,147 on Saturday, according to statistics from Coingecko.
BTC’s price is falling below the 2017 high of $20,000 and continues to lose significant value. At the time, reaching $19,500 was referred to as a “surge” associated with potential U.S. regulation of stablecoins.
According to TradingView data, the BTC/USD exchange rate fell below $20,000 in December 2020. It reached $19,065 as of press time.
Since November, the biggest cryptocurrency has lost more than 70 percent of its value.
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Bitcoin drops take a hit on market sentiment
Bitcoin may make history by closing below its 200-week moving mean, which is a rare event. It has been seen only five times before. Recent calculations indicate that Bitcoin’s 200-week moving average is approximately $21,700.
Due to a global market downturn, all cryptocurrency are in the red. At the time of writing, Bitcoin’s market value has fallen further below the $1 trillion threshold, at $885 million.
The price of bitcoin is continuing to fall, and market analysts are worried that sentiment will also continue to slide.
BTC market capitalization at $368 Billion according to the Weekend Chart | Source: TradingView.com
As jitters increased following the Federal Reserve’s pronouncement on the inflation outlook, crypto markets suffered the brunt of a major selling that began with last week’s shocking Consumer Price Index (CPI) data.
Next Bottom: $15,500
According to traders, the next Bitcoin low could be at $19,000 or $15,000. The next BTC bottom might be around $19,000 or $15,500, according to Rekt Capital, a cryptocurrency trader, based on the coin’s historical statistics on weekly moving averages.
The failure of two major cryptocurrency projects, Terra Luna and Celsius, has contributed to Bitcoin’s collapse. They were meant to promote stability in digital currency, but have undermined trust.
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Meanwhile, the chief executive officer of Digital Currency Group, Barry Silbert, the CEO of Global Macro Investor, Raoul Pal, investor Scott Melker, and others indicated that they are buying the (Bitcoin) dip.
By declaring in a recent tweet that he is purchasing Bitcoin, Silbert has somehow eased the paranoia of cryptocurrency bulls.
The crypto tycoon has echoed the sentiments of MicroStrategy’s CEO Michael Saylor, who recently increased his optimism despite dealing with heavy losses.
Featured Image from Forbes. Chart by TradingView.com