the carnage continues as cryptocurrency breaks $ 20,000 to trade at its lowest level since 2020. Don’t be surprised if $ 10,000 is the next stop.
has fallen 7.2% to $ 19,027.52 in the last 24 hours, bringing it to its lowest level since December 2020. Worse, The price of bitcoin continues to break through levels of technical support, suggesting that even worse countries are ahead, although they have already lost more than 70% since reaching $ 67,802.30 in November 2021.
This chart is not beginning to justify the decline of bitcoin, but it will have to. And that shows how weak the cryptocurrency was and how low it could fall.
For example, although Bitcoin managed to reach a new peak in November, it still seems to have created something of a “double peak” with its April 2021 highs. it was, looking back, a sign that the breakthrough would not be. From there, it was a quick trip to $ 40,000 or so, which became support for a while. When $ 40,000 broke, it fell to $ 30,000 and then lingered for a while. But when $ 30,000 broke, it was fast travel up to $ 20,000.
Despite the decline in bitcoin over the weekend, it has not yet broken maintenance around $ 20,000. This is because if we want to get really complicated, the support is probably in an area ranging from $ 18,300 to $ 19,500. according to Katie Stockton of Fairlead Strategies. This is one of the reasons why bitcoin can stay in this area for a while before falling. And if $ 20,000 breaks, there is no support until the next big round of $ 10,000. Let’s agree not to think about what will happen if bitcoin breaks $ 10,000 yet.
What should scare crypto investors is how well Bitcoin performs compared to other coins.
has fallen by more than 80%. As Stockton points out, “in the cryptocurrency market, bitcoin is a ‘safe haven’ compared to altcoins.”
If bitcoin is considered safe, that tells us all we need about the argument that cryptocurrencies are a storehouse of value. What is retained, at least on a relative basis, is gold. The precious metal closed at a price of 1835.60 dollars per troy ounce on Friday, which is 10% less than its 52-week peak on March 8, 2022. For the year, however, it increased by 0.4% or almost completely equal . And this is despite a dollar that has done nothing but rise (gold is valued in dollars, so when the dollar rises, its price must fall, and the alleles are equal). This also demolishes another argument in favor of crypto that they are the new gold. And who knows, maybe the decline of bitcoin could be accelerated to the point that something truly amazing happens.
“As long as our low target for bitcoin is $ 10,000, that would really be something if.” the price of gold rose than the price of bitcoin, “wrote 22V technical analyst John Rocke.
Yes, it would be.
Write to Ben Levisohn at firstname.lastname@example.org