Editor’s Note: With so much market volatility, keep up with the daily news! In just a few minutes, get caught up in our quick recap of today’s top news and expert insights. Login here!
(Kitco News) The weakness present in the cryptocurrency market on Friday continued over the weekend, leading to further losses in trading on Monday as several recent enforcement actions by the Securities and Exchange Commission led to a severe case of FUD (Fear, Uncertainty and Doubt ) in the crypto community.
Shares, meanwhile, edged higher at the start of the week as investors are cautiously optimistic ahead of tomorrow’s Consumer Price Index (CPI) report, which is expected to show annual inflation falling to 6.2% from 6.5% in the previous month. At the close in the US, the S&P, Dow and Nasdaq all ended the day in the green, up 1.14%, 1.11% and 1.48%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) price started trending lower late Sunday and continued to trade lower throughout the morning, hitting an intraday low of $21,373 just after midday before recovering later in the afternoon was again bid over $21,600.
BTC/USD 4 hour chart. Source: TradingView
The weakness, seen early Monday morning, led to a three-week low in the price of bitcoin futures, according to Jim Wyckoff, senior technical analyst at Kitco, who said the “price uptrend on the daily bar chart was negated and the bulls have lost their near-term technical advantage.”
As it stands now, “bears are working on a price downtrend,” Wyckoff concluded.
Bitcoin must hold $21,500
While no one likes the sight of prices falling, analysts at Eight Global said that “a correction was due,” noting that it happened to “coincident with another regulatory crackdown on the crypto space last week.”
Digging deeper into the data, the Bitcoin chart shows that “after two failed attempts to establish support at $23,500 and the daily 8EMA [exponential moving average], support broke and the price retreated to the $20,800-$21,700 region,” said Eight Global. The top of the current range sits at the 0.382 Fib retracement level and is in sync with the daily 34EMA, “which is holding support so far”.
BTC/USD 1 day chart. Source: Eight Global
“As long as the daily candle closes above $21,500 (which is an area of high interest for futures and margin traders), long positions could be favored,” the analysts said. “We may see some wicks to bring liquidity to the south but unless $21,500 turns into resistance at least a bearish retest of the $22,500 area is likely which would give one a chance to close any long positions that are entered into at the current level with a stop-loss order at break-even.”
However, the likelihood of BTC managing to sustain above $21,500 remains questionable, as crypto market analyst Rekt Captial pointed out in the following tweet, suggesting that BTC is positioned for a continuation of the downside.
The new #BTC weekly close takes place below the green level, which technically positions the price for a continuation of the downside
Especially with the green $BTC level acting as resistance all week #Crypto #Bitcoin pic.twitter.com/LnbLQvqMnv
— Rekt Capital (@rektcapital) February 13, 2023
Crypto market cap falls below $1 trillion again
The vast majority of the altcoin market was down on Monday, with just a handful of tokens posting modest gains, while many projects suffered double-digit declines and the total cryptocurrency market cap slipped back below $1 trillion.
Daily performance of the cryptocurrency market. Source: Coin360
The biggest gainer of the day was BinaryX (BNX), which climbed 11.55% to trade at $169.70, followed by a 10% gain for Maker (MKR) and a 9.1% gain for Curve DAO Tokens (CRV).
The total cryptocurrency market cap is now $997 billion and Bitcoin’s dominance rate is 41.8%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.