The cryptocurrency market’s winning streak ends as bitcoin slides to support at $20,800

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(Kitco News) – The cryptocurrency market saw prices slump in trading on Wednesday as several key announcements — including the prospect of Genesis Global Capital being forced to file for Chapter 11 bankruptcy protection — brought an end to a multi-day streak of price gains as Traders have taken profits and are now waiting for a good opportunity to re-enter the market.

Traditional markets were also under pressure as the latest retail sales report showed a slowdown in consumer spending activity to match a cooler than expected inflation reading. When markets closed in the US, the S&P, Dow, and Nasdaq all closed in the red, down 1.56%, 1.81%, and 1.24%, respectively.

Data from TradingView shows that an early morning bull push was rejected by Bitcoin (BTC) bulls at $21,646, prompting a rapid 5.72% decline to a daily low of $20,415 before being bid back above the Support is at $20,800.

4 hour BTC/USD chart. Source: TradingView

The pullback in price was a “natural pause after hitting a four-month high on Tuesday” according to Kitco chief technical analyst Jim Wyckoff, who noted that the bulls still “have a firm overall technical advantage in the near term amid an uptrend in Prices daily bar chart.

“This points to further upside in the near term,” Wyckoff concluded.

Corrective pullback before a bull market

Recent market update Report Eight Global described the possibility of a corrective pullback as a likely scenario based on where the price is trading and the RSI. According to Eight Global analysts, $20,000 and $19,500 are levels to watch now as good locations to look for long opportunities.

“In particular the $19,500 area is of interest, both in terms of the horizontal S/R level and the 200-day simple moving average now starting to rise from there,” the update said.

“In the event of a decline, the price may head towards $18,800, so initial stop-loss orders can be placed below. When the price reaches the $20,800 area again, the stop-loss can be moved to break even or take profit to secure the position,” the analysts note.

Full-time cryptocurrency trader Daan Crypto Trades noted that the current price action of Bitcoin is similar to what was seen in April 2019 and warned Those expecting a quick follow-up rally may be disappointed because the price “could contract here for much longer than you think.”

BTC/USDT 1-day chart. Source: TradingView

“In 2019, we were on a small scale for a month before we saw a breach. Many positions, on both sides, were modified during this breach,” Dan cautioned.

Market analyst Rekt Capital made a similar note about the move in April 2019 and posted a tweet discussing a possible pullback to $17,000.

The Altcoin market has taken a hit

The broader cryptocurrency market also gave back some of its recent gains as only a few tokens were green while the vast majority booked losses for the day.

Daily cryptocurrency market performance. Source: Coin360

Ventures that managed to gain amid the broader market decline include Kava (KAVA), which increased 9.82% to $1.03, an 8.88% increase for Galxe (GAL), and a 6.98% increase for Shiba Inu (SHIB).

The total cryptocurrency market cap is now $975 billion, and the Bitcoin dominance rate is 41.3%.

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the opinions of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will not be held liable for losses and/or damages arising from the use of this publication.

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