Bitcoin, Ethereum Dab on Fresh Retail Selloffs
Bitcoin, Ethereum and other large-cap crypto assets see their respective price dropping strongly on Monday, according to trading data from the cryptocurrency exchange on the back of fresh retail selloffs.
Following the exit trades that appear to be gaining momentum, the cryptocurrency market sinks deeper into the red amidst regulatory concerns and a general investor reluctance to invest in risky assets due to impending interest rate increases.
By market value, Bitcoin, the most valuable cryptocurrency, dropped about 5% to a three-month low of $18,387. According to the estimates by CoinGecko, the global crypto market cap today fell below $1 trillion, falling more than 7.8% in the last 24 hours to $938 billion.
Ether, the second most valuable cryptocurrency, fell 3% to a two-month low of $1,285 and is now down more than 10% in the last 24 hours. While it was largely expected that ETH price would see notable gains, Ether has been on a downward spiral since the Ethereum Merge took place.
The Ethereum Classic (ETC) token turned out to be the biggest loser in the last 24 hours, with a loss of over 17%. This market crash could be due to the growing fear of an Ethereum “fork” and tightening regulations globally. Last week, U.S. Securities and Exchange Commission Chairman Gary Gensler hinted that the new structure might attract additional regulation.
The Securities and Exchange Commission (SEC) is paying close attention to proof-of-stake tokens and any new developments in the crypto world. According to the Wall Street Journal, SEC Chair Gary Gensler stated that proof-of-stake cryptos could be investment contracts that subject them to securities regulations.
Investors are preparing for volatility due to the Federal Reserve’s anticipated jumbo interest-rate hike this week to combat price pressures. READ: Bitcoin Gives Up Gain as Top Cryptocurrencies Decline
Meanwhile, BNB is down 6.53% in the last 24 hours, while Solana is down 7.66%. Today’s dogecoin price was about 7% lower at $0.05, while Shiba Inu fell more than 9% to $0.000011. Other crypto prices have also dropped in the last 24 hours, including XRP, Uniswap, Polygon, and Avalanche.
BTC saw a decline in its price from $69,000 to around $18,500, with an over 70% drop from its all-time high.
The price of BTC bounced off after touching a weekly low of $19,000, and the price rallied to $25,000, showing some great strength as many set prices and expectations for a rally back to $30,000, but the price was faced with rejection.
The price of BTC on the weekly chart formed a downtrend line as the price continued to respect this resistance line bouncing off to maintain its bearish run. Still, the price of BTC could not break this trend line after a while, with the price being rejected from the trend line resistance.
BTC’s price is trading above the key support of $18,000; the price of BTC needs to hold above this support to avoid the price going lower to $16,000-$15,000. With the price of BTC holding this support, we could have the chance of trading higher to a region of $20,000.
A break below $18,000 would mean retesting lower demand zones and reluctance for bulls to step into buy orders as there would be more agitation for lower prices. For BTC’s price to restore its bullish move, the price needs to break and hold above the trend line resistance preventing the price of BTC from trending higher.