Bitcoin has experienced a sharp fall on the day with a 7.2% slide to its current price of $21,500. As much as an 8% price reduction was seen earlier. Practically the entire crypto market has followed suit.
The yoyo that is crypto continues to bounce around in the midst of extremely uncertain macroeconomic times. The rally that had begun at $17,500 was making steady higher highs and higher lows.
However, this morning’s fairly emphatic dump has sent the market into the jitters territory again, and all are wondering if the strong support of the 200 weekly moving average will be held by the end of the week, or if bitcoin is going to break it and head down to its previous local low.
CZ, the CEO of Binance, tweeted out a vaguely enigmatic statement with his view of the situation:
Nevertheless, given that the rally was in its ninth week and that from bottom to top, the bitcoin price had increased 43%, the market was probably overdue for a correction.
The Fear and Greed index continues in Fear territory, with a value of 33, slightly down on yesterday’s figure of 30. Bearing in mind that Fear registered 43 last week, the market is being quite resilient during this particular downturn.
On Bitcoin Twitter, some are pointing to the bitcoin realised price, stating that $21,750 is the current figure where most holders of bitcoin start to see their positions go underwater. At time of writing bitcoin has just dipped below this price and is heading down strongly.
Notwithstanding, the RSIs for all the medium term time frames out to the daily are starting to enter oversold territory, so look for bitcoin to bounce within the next day or so.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/08/bitcoin-falls-suddenly-sending-market-into-uncertain-territory