Bitcoin broke below the $19,000 level as investors continued to ditch riskier assets amid a worsening macroeconomic environment coupled with aggressive tightening from major central banks. Wave off sell-offs wiped off billions of dollars from the market and caused serious problems to several companies from the crypto sector. Recently Binance, the world’s biggest crypto exchange by volume, CoinFlex, and crypto lender Celsius temporarily suspended bitcoin withdrawals. Yesterday major cryptocurrency hedge fund Three Arrows Capital defaulted on a more than $670 million loan from Voyager Digital and is one of the biggest casualties of the latest so-called “crypto winter.” Today's downward move was sparked by Securities and Exchanges Commission (SEC) which again declined Grayscale’s request to approve 2 spot Bitcoin ETFs. Grayscale has sued the SEC in response.
During today's session Bitcoin price dropped 8.0% and is on track for a record 40% monthly decline. Major altcoins also took a hit, with Ethereum notching a 10.0% drop following latest transactions problems on Coinbase and Solana’s plunged over 12%. Total cryptocurrency market capitalization lost 4.3%.
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Bitcoin resumed downward movement this week, after buyers failed to break above 200 SMA (red line) which acts as the short-term resistance. If current sentiment prevails, downward move may accelerate towards local support around $17770 which is marked with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, the next target for sellers is located around $12700 and is marked with a lower limit of the 1:1 structure. Source: xStation5
