bitcoin
Other cryptocurrencies retreated away from key levels on Thursday, paring gains from a recent rally to take a backseat with the stock market as risk sentiment took a hit amid worries about the global economy.
Bitcoin price fell by 1.5% over the past 24 hours to $28,800, retreating further from the psychologically important $30,000 level that the largest digital asset crossed last week for the first time in 10 months. The area around $30,000 is seen as crucial because it was the prices it reached last June, when cryptocurrency selling accelerated in a brutal bear market. Bitcoin price rose as high as around $31,000, but has since struggled to consolidate gains or push higher.
“There are some clear signs of exhaustion with the growth of the global cryptocurrency market cap, and if we were looking at a period of consolidation, it seemed like a good time to exit,” said Edward Moya, analyst at broker Oanda. “If the bearish pressure continues, support will not emerge until the $28,550 area.”
Cryptocurrencies fell along with stocks, with
Dow Jones Industrial Average
And
Standard & Poor’s 500
On track for losses. Investors have been concerned about inflation and how higher interest rates from the Federal Reserve and other central banks – which dampen demand for risk-sensitive assets such as Bitcoin and stocks – will affect economic growth.
Bitcoin remains correlated with stocks amidst a macroeconomic backdrop dominated by inflation, interest rates, and recessionary risks. A High-Growth Game Like many tech stocks, Bitcoin was also losing ground along with the tech-heavy Nasdaq 100, which was dragged lower by the response to earnings from component Tesla (ticker: TSLA).
There could also be some profit-taking, with bitcoin still up around 75% so far this year despite the recent declines. Market watchers have been taking note The recent drop could be caused by a massive sell order on the Binance exchange, where a trader quickly sold 16,000 bitcoins for a value of more than $460 million.
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Either way, as bitcoin prices move further away from the key $30,000 level, analysts are looking to technical market factors for clues as to where support is.
“If it can hold above $28,000, the market sentiment will be very bullish. A full correction… will bring the price back to the 50-day moving average at $26,700,” said Alex Kuptsikevich, analyst at brokerage FxPro, Alex Kuptsikevich, an analyst at brokerage firm FxPro. This is an area worth watching, as further declines would call into question the resumption of a sustained cryptocurrency bull market.”
beyond bitcoin,
ether
– the second largest cryptocurrency, which outperformed after the successful completion of a significant network upgrade – fell 1% to $1,950, leaving behind the key $2,000 level it breached last week for the first time since May 2022. Smaller cryptocurrencies were also weaker, with
Cardano
Just below flat f
ribbed
2% less. Memecoin was more optimistic with
Dogecoin
Jump 5% while
shiba inu
rose 1%.
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