Bitcoin price on Friday dropped below $40,000-mark for the second time this month. The world’s largest cryptocurrency slumped to $38,838.04 at 1150 hours IST, down by 7.51 per cent in the last 24 hours, according to CoinMarketCap. The recent tumble in the cryptocurrency market drageed Bitcoin to the lowest level in more than five months. The cryptocurrency token lost some $1 trillion in value since its all-time high of nearly $69,000 in November last year.
The slump in the cryptocurrency world was fuelled by the latest decision of US Federal Reserve to tighten monetary policy at a faster pace than expected. Amid the low severity of the Omicron variant and centra banks effort to revive the economy to normality, US Federal Reserve may raise rates three times this year, a Reuters poll suggested.
“Bitcoin gave a breakout on the downside of the range, early this month and started going down by forming a ‘Lower Top Lower Bottom’ pattern making the low of $39,650. The asset has made a ‘DOJI’ candle at the support of $39,600 (September low from where the earlier rally started) and has shown signs of recovery. Currently, the asset is making a series of small ‘Doji’ candles with low volumes which indicates indecisiveness. A break below $39,500 will lead to further downfall and the prices can slide to $35,000 levels,” said ZebPay trade desk.
Ether Drops 9% in a Day:
Ether tanked 9.06 per cent in the last 24 hours to hit $2,857.33 on January 21, according to CoinMarketCap. The world’s second largest cryptocurrency shed 13.5 per cent in last one week. “Ether post taking support at $2,950 showed good signs of recovery. However the bulls failed to manage the grip on the asset and the prices witnessed correction after resisting around $3,415. If the prices hold the support of $2,950 then we can expect the bulls to resume the up move whereas a break below the support will lead to further downfall and the prices can slide to $2,600 levels. To further rally Ether needs to trade and close above the resistance of $3,600,” said ZebPay trade desk.
The global cryptocurrency market capitalisation decreased by 7.55 per cent in the last 24 hours. The crypto market cap stood at $1.83 trillion at the time of writing the article. The total volume in DeFi was at $13.90 billion, 14.10 per cent of the total crypto matket 24-hour volume while the volume of all stable coins was at $78.59 billion, 79.71 per cent of the total crypto matket 24-hour volume. The total crypto market volume over the last 24 hours was $98.59 billion.
“The support price for Bitcoin support price is above $40,000 as momentum improves on intraday charts. The resistance zone of Bitcoin ranges between $43,000 to $45,000. If the support levels break, it will indirectly pressure the crypto market. The other cryptocurrencies such as Terra, Cosmos, FTX Token, and Hedera saw decent gains. The ongoing coronavirus pandemic and rising inflation are pulling the market down,” said Edul Patel, CEO and co-founder, Mudrex- A Global Crypto Trading Platform.
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