The cryptocurrency market has experienced a correction as most of the coins have moved back into negative territory to start the new week. On Monday, the price of Bitcoin, Ethereum, and other popular cryptocurrencies declined as a result of expectations that the Federal Reserve will raise its key interest rate by 0.75 percent, the highest increase in three decades.
The cryptocurrency market has reached a turning point for Bitcoin, according to Blockware analyst Will Clemente, as the largest cryptocurrency might drop back below $20,000 if it leaves the area it has been stabilizing in for the past five days.
According to Clemente’s chart, the 200 WMA support line and the highlighted price range are the only things preventing Bitcoin from falling down to the $19,000 level at the moment.
The price of Bitcoin might return to the level it last saw two weeks ago if it drops below $22,000. The lack of short-term support zones that will prevent BTC from plunging into the abyss once more is the major problem with its current state.
On the flip side…
Fortunately, technical analysis is the only thing indicating that Bitcoin’s hold on $22,000 is slipping. The fact that inflow statistics and trading volume are still rising is a clear indication that bulls will continue to support the coin.
Thankfully, the recently revealed information regarding Tesla selling 75% of its Bitcoin holdings and the European Central Bank’s rapid rate hike did not result in any extreme market turbulence, which is now good for Bitcoin.
Given that larger retail and institutional investors are still hesitant to make any significant inflows into the cryptocurrency market, Bitcoin needs a little more time to consolidate at local support levels before it can show the market a more stable rally in the future.
At the time of writing, Bitcoin had fallen to a weekly low of around $21,925, down 3.6 percent over the previous 24 hours. Ethereum, the second-largest cryptocurrency on the market, has also fallen to its current value of $1,519, down nearly 5 percent for the day.
