The cryptocurrency market’s winning streak is coming to an end as Bitcoin supports $20,800

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(Kitco News) – The cryptocurrency market saw a drop in prices during trading on Wednesday as several major announcements, including the possibility that Genesis Global Capital will be forced to file for Chapter 11 bankruptcy protection, ended a multi-day rally. As traders take profits, the price rises and is now waiting for a good opportunity to re-enter the market.

Traditional markets also came under pressure as the latest retail sales report showed a slowdown in consumer spending activity along with a cooler-than-expected inflation reading. At the close of markets in the US, the S&P, Dow and Nasdaq fell 1.56%, 1.81% and 1.24%, respectively, to finish in the red.

Data from TradingView shows that Bitcoin (BTC) bulls’ early-morning rally was rejected at $21,646 and it fell to a daily low of $20,415 in a quick 5.72% decline before offering a price above support at $20,800.

BTC/USD 4 hour chart. Source: TradingView

The price pullback was a “normal pause after Tuesday’s four-month high,” according to Jim Wyckoff, chief technical analyst at Kitco, who noted that bulls still have “solid overall near-term technical upside amid a bullish price trend.” daily bar chart.”

“This points to further upside in the near term,” Wyckoff concluded.

Corrective pullback before a bull market

Eight Global’s latest market update report called the possibility of a corrective pullback a likely scenario based on where the price and RSI are trading. According to analysts at Eight Global, $20,000 and $19,500 are the levels to watch now as good spots to look for long opportunities.

“The $19,500 area in particular is of interest both in terms of the horizontal S/R level and the 200-day simple moving average is also currently starting to twist from there,” the update said.

“If a drop occurs, the price may rise to $18,800, so initial stop loss orders (SL) can be placed below. When the price reaches the $20,800 area again, it can break even to secure the SL position or move to take profit,” the analysts noted.

Daan Crypto Trades, a full-time cryptocurrency trader, notes that the current price action for Bitcoin is similar to what was seen in April 2019 and warned those expecting a quick follow-up rally may be disappointed, as price “could be cut here for longer than you think.”

BTC/USDT 1 day chart. Source: TradingView

“We grinded in a small range for a month before seeing a breakout in 2019. Many positions on both sides were disgraced during this cut,” Daan warned.

Market analyst Rekt Capital made a similar observation on this move in April 2019 and wrote a tweet discussing the possibility of a pullback to $17,000.

The altcoin market is taking a hit

The broader altcoin market also gave back some of its recent gains as only a handful of tokens were in the green while the vast majority booked losses for the day.

Daily cryptocurrency market performance. Source: Coin360

Projects that managed to gain amid the broader market pullback included Kava ( KAVA ), up 9.82% to $1.03, Galxe ( GAL ), up 8.88% and Shiba Inu ( SHIB ), up 6.98%.

The total cryptocurrency market size is currently $975 billion, and Bitcoin’s dominance rate is 41.3%.

Disclaimer: The views expressed in this article are those of the author and may not reflect his views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a requirement to make any exchange for commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accepts no responsibility for any loss and/or damage resulting from the use of this publication.

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