As the market selloff intensifies, Bitcoin continued to fall further to $17,750.
Bitcoin’s price is still falling steadily and is currently testing the 2017 all-time high range of $17,000 to $20,000. However, the descent shows no indication of abating, and analysts are are not quite sure to call a bottom at this time.
Ethereum dropped below $1,000 within an hour. These numbers were seen as critical support levels for top coins according to market capitalization.
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The next several days could be crucial for Bitcoin, as a failure to establish support at this position could lead to a further market decline into the $15,000 mark.
Alternativly the $24,000 mark would represent the first obstacle before the $30,000.000 resistance and 50-day moving average.
This year’s Crypto Winter is different from 2018. Crypto stocks are plummeting alongside tech stocks, the economy is in fragile shape, inflation is high, and there is an impending recession.
The Crypto Winter this year is very different than last year because both cryptocurrencies as well as tech stocks are in decline. Image: CNBC.
The price of Bitcoin dropped by over 30% in the last week. This is an indication that the market has been experiencing maximum anxiety. As indicated by the exchange inflows, a significant number of coins which have been held and purchased over the last two years is being transferred to exchanges.
On Friday, Antoni Trenchev, the founder of cryptocurrency lender Nexo, stated on Bloomberg that the current slump “reminds me of the 1907 bank panic.”
Saturday, Kraken’s director of growth marketing and Bitcoin influencer Dan Held warned, “We are on the path of maximal pain.”
Bitcoin’s decline occurred over the course of several months, and was hastened in recent weeks by the collapse of two major cryptocurrency projects, Terra-Luna and Celsius, which further sowed worries about the market’s durability.
Source: TradingView.com| Source: TradingView.com
The cryptocurrency market is also under pressure from macroeconomic factors like rising inflation and interest rate increases by the Federal Reserve.
As equities fall, market observers also keep an eye on the top-tier cryptocurrency markets. It doesn’t help that crypto companies are issuing the pink slips and rendering a large number of people jobless, and that some of the industry’s most recognizable brands are facing solvency breakdowns.
Recent data from analytics site Glassnode shows that Bitcoin miners’ revenue has been declining. Due to rising mining costs and an increasingly difficult macroeconomic environment miners have become less profitable.
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Featured image by Domestika. Chart from TradingView.com