Bitcoin’s price failed to breach the $43,500 resistance level and plummeted below $42,000 before reversing course.
The world’s most valuable cryptocurrency is now exhibiting bearish characteristics and remains vulnerable to a move towards $40,500, multiple charts show.
Bitcoin traded below $42K on March 22 for the first-time since March 22, reverting to the same trading range this year due to rising anxiety about interest rates.
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Bitcoin Backpedals For 6th Straight Day
Asia’s most-popular cryptocurrency fell to $41,818 Monday morning. However, it retreated for six days in succession.
Since late March, when it peaked just above $48K, BTC – and other tokens – have been dragged lower by concerns about restrictive monetary policy.
Monday’s cryptocurrency market trading was sideways. Bitcoin and Ethereum both fell in the morning, but altcoins saw a sharp decline.
Global unrest intensifying as a result of Russia’s invasion on Ukraine, combined with economic uncertainty, is pushing markets into a tailspin.
The digital sector faces other major threats, such as rising interest rates and higher prices.
Ascent Wanes After Miami Conference
The excitement generated by last week’s Bitcoin 2022 conference in Miami was insufficient to halt the trend.
Antoni Trenchev was the managing partner for cryptocurrency lender Nexo.
“Now that the sugar rush associated with Bitcoin 2022 has passed, Tuesday’s (likely) dismal US consumer price report serves as a reminder that the central bank is caught between a rock and a hard place when it comes to addressing uncontrolled inflation without imploding the economy.”
BTC market capitalization at $785.54 Billion according to the Weekend Chart | Source: TradingView.com
Bitcoin traded in an area of $35,000-$45,000 for the bulk of its year. Last month’s burst above $48,000 briefly reversed the token’s year-to-date losses, but BTC encountered resistance at its 200-day moving average.
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BTC Market Cap down
The world’s cryptocurrency market capitalization has decreased to $1.93 trillion, down as much as 3% in the last 24 hours. But, cryptocurrency trade volume increased by more than 15% and reached $63.91 billion.
The expectation of tighter money policy has impacted demand for higher-risk assets, such as technology stocks and cryptocurrencies. They are becoming more closely aligned with each other.
Others popular crypto currencies also dropped Monday with Polkadot dropping 8.7 percent, and Ether plummeting 4.6 percent.
While Bitcoin’s maturity and usage increase, so does its price, which is increasingly in line with traditional asset prices such as stocks.
This growing link suggests that any price drop in traditional markets would almost certainly lead to a price decrease in Bitcoin.
Featured Image from Medium. Chart from TradingView.com