The cryptocurrency market has experienced a correction as most of the coins have moved back into negative territory to begin the new week. On Monday, the price of bitcoin, ethereum and other popular cryptocurrencies fell as a result of hopes that the Federal Reserve would raise its key interest rate by 0.75 percent, the highest increase in three decades.
According to Blockware analyst Will Clemente, the cryptocurrency market has reached a turning point for Bitcoin, as the largest cryptocurrency could drop below $20,000 if it leaves the area where it has been stabilizing for the past five days.
According to Clemente’s chart, the 200 WMA support line and the highlighted price range are preventing bitcoin from falling towards the $19,000 level at the moment.
If bitcoin breaks below $22,000, the bitcoin price could return to the levels it was two weeks ago. The lack of a short-term support zone that will prevent BTC from falling into the abyss once again is a major problem with its current position.
on the flip side…
Fortunately, only technical analysis is showing that bitcoin’s hold at $22,000 is waning. The fact that the inflow statistics and trading volume are still rising is a clear indication that the bulls will continue to support the coin.
Thankfully, the recently revealed information about Tesla selling 75% of its bitcoin holdings and the European Central Bank’s rapid rate hike did not lead to extreme market turbulence, which bodes well for bitcoin now. .
Given that large retail and institutional investors are still hesitant to make any significant inflows into the cryptocurrency market, bitcoin will need a little more time to consolidate at local support levels before it can see the market more stable in the future. Show rally.
At the time of writing, bitcoin is down by 3.6% over the past 24 hours to a weekly low of around $21,925. Ethereum, the second largest cryptocurrency in the market, has also dropped to its current price of $1,519, down about 5% for the day.