Bitcoin Price Plunges; Crypto Market Loses $500 Billion
Bitcoin price drops significantly on Saturday. More precisely, it loses 10% of its value within one hour. Overall, the world’s largest cryptocurrency is down by almost 18%. The cryptocurrency market cap dipped almost $500 billion, whereas BTC’s market cap crashed by almost $200 billion. Besides that, the top 5 cryptocurrencies also lost their values in the last week. After this downfall, BTC holds 40% of the overall market cap, which was 60% two weeks ago.
At the time of writing this technical analysis, the price of Bitcoin is around $48k. The overall price chart shows a bearish trend.
After breaking the support level of $53k, BTC has broken the trendline on Saturday. Still, Monday’s candlestick is read without the sign of bullishness again.
Now, the price is coming down to the next support level of $40k. Many experts are of the opinion that Bitcoin will cross the $70k mark this year, but after looking at the present trend, we hope that the BTC price will not cross the mark this year. It has a strong resistance level of $57k.
The MACD chart is bearish; the blue line is far lower than the red line. The RSI is 30, which is also not good for this chart.
Besides that, the Moving Average is going downwards, which is also reflecting bearishness. The last few candlesticks are the lower half of the Bollinger Band. It is interesting to note that the last three candlesticks (including Saturday’s) have broken the lower half of the Band.
Is it the right time to invest? We think it is not the right time to invest. Because it shows all signs of bearishness, if you are a long-term investor, you can accumulate some of the coins, but if you are a short-term player looking for a swing trade, then it will not give you any chance of swing trading. Visit here to know more about the Bitcoin predictions.
Due to high inflation, interest rate increment, profit booking, and many other reasons, the crypto market is also down. If you compare the world’s major stock indices, you can find the same situation, so it is not adverse for the world’s largest cryptocurrency.
You can either hold or book profit based on your risk-taking capacities if you have BTC. The overall crypto market is risky, and as it has no fundamentals, it is hard to specify the time of the opposite/reverse trend. However, Bitcoin is the most popular cryptocurrency, so it is less risky for you to hold/invest in this coin.