Bitcoin is fighting for support at 20 000 USDðð
Bitcoin's downward movement has taken a turn for the worse, with the 'king of cryptocurrencies' slipping near another important support at $20,000.Â
- Yesterday, Bitcoin slid below $22,000 where the SMA 200 weekly moving average was located. Below this average, Bitcoin's price has only entered 3 times so far in history, in 2013, 2018 and 2020. The 200-session average has served as one of the primary technical indicators of a bull market or bear market cycle for investors for many decades;
- Microstrategy, which not so long ago pledged to defend Bitcoin from falling below 21,000 is struggling to cope with the problems resulting from such a steep price drop, though CEO Michael Saylor is reassuring investors;
- A drop in Bitcoin below $20,000 would likely pull Ethereum below $1,000. Additionally, the price of BTC has never fallen below the price peaks of the previous bull market which could compound the panic;
- Coinbase (COIN.US) announced plans to lay off 18% of its workforce amid fears of a possible recession and a prolonged slump in the cryptocurrency market;
- Investors are awaiting the U.S. Federal Reserve's interest rate decision today, making us see high volatility and anxiety in the 'sensitive' cryptocurrency market. Moreover, global capital is keeping a close eye on the ECB's emergency, urgent meeting, which will, among other things: discuss the current situation in the bond market;
- Problems with the decentralized platform Celsius, which is halting withdrawals and transfers of customer funds have cast a pall of fear over the decentralized finance sector 'DeFi' ;
- Another 'stablecoin' mimicking the U.S. dollar - USDD owned by the Tron blockchain has lost its correlation with the dollar and is still trading at $0.96 despite attempts to defend peg.
Bitcoin and Ethereum chart (yellow), MN interval. The price of Bitcoin and the correlating Ethereum is trying to break out of historical supports. Source: xStation5
