Bitcoin Price Trends Below $17,000, What’s Next For The Crypto King?
The Bitcoin and crypto market has been volatile for most of 2022. Coming out of the prolonged bear market, most experts were optimistic that it was close to a bottom. However, recent trends in the crypto world and macro financial activities have extended the downtrend.
The Fed’s rate hike continues to negatively impact crypto assets. XRP’s case with the SEC has also hurt crypto holdings. With their recent win over crypto giants LBRY, the XRP case is being watched with anxiety.
The XRP and LBRY cases have striking similarities, although XRP’s legal team has expressed confidence in their chances.
Recently, FTX’s collapse has also sent investors into a withdrawal frenzy, preferring to keep their assets. In addition, trust in central exchanges is now at an all-time low and has called into question the legitimacy of cryptocurrencies.
In the last 24 hours, the prices of cryptocurrencies have changed significantly, with changes recorded in most projects.
Bitcoin’s price drama
BTC price registered a brief bullish rally credited to the tweets of Elon Musk and Binance CEO Changpeng Zhao. Zhao talked about creating an industry recovery fund to help crypto projects that are strong but have liquidity problems.
This announcement comes on the heels of the FTX disaster and Binance’s proposed bailout being suspended.
Elon Musk had responded to a tweet from Michael Saylor about converting Tesla holdings to Bitcoin and its positive effect on the market. The Twitter exchange between the two founders sparked a brief rally for the world’s number one cryptocurrency.
Bitcoin’s price registered an intraday high of $17,190. However, it could not withstand the resistance and succumbed to bearish pressure falling to $16,191 later. BTC’s price has recovered slightly and is currently trading at $16,713.
The total market cap for crypto is around $890 billion. These figures show an increase of 10 billion dollars in market value. However, Bitcoin’s dominance took a hit and is currently at 36.6%.
With the current volatile market phase, investors are likely to proceed cautiously as events unravel. However, Bitcoin is likely to lead the rally if prices pick up in the coming days.
Bitcoin Price Performance
Bitcoin’s recent price performance shows that the coin is observing a price decline. The FTX collapse may have also aided this downward spiral. Investors have gone short on shedding positions to cut losses and prevent total bankruptcy.
Bitcoin’s current support levels are at $16,265 and $16,404.8. However, market volatility will have something to say about the Bitcoin price, with the coin crossing the critical pivot point of 16541.7.
The MacD indicator clearly shows Bitcoin’s brief rally and descent into a fully bearish phase. Volatility is high and a risky investment for investors since a further fall is still likely.
SMA 50 and 200 also reflect the bearish trend of BTC and is likely to continue the decline on the chart. Bitcoin is not likely to go on a bullish spree.
Featured image from Pixabay, chart from TradingView.com