Despite the announcement that the Fed was raising its rates, Bitcoin was able to hold over $ 20,000. The same goes for ETH which is still above $ 1000, although the resistance could be tested earlier.
Bitcoin Over $ 20,000
The crypto market has been extremely volatile in recent days. There are a number of reasons for this sharp decline. On the one hand the declining technology market, the declining stock market in general and finally a declining encryption sector, especially with investor confidence rigorous testing. This, since the collapse of the Terra Luna ecosystem.
It’s a tough week for the crypto world and especially the Bitcoin which has lost over 55% of its value since the beginning of the year (currently trading at just over $ 21,000). The announcement of inflation, at its highest level in 40 years, did not help matters.
So the price of BTC has dropped sharply over the last few days and if there is still doubt about a potential fall below $ 20,000 at the moment, resistance keeps up ! This is still the lowest Bitcoin price for over a year.
The story in the coming days
Some traders are suggesting that Bitcoin could continue its slippage to reach $ 13,000. In other cases, BTC may stabilize and value recovery begins early.
It’s hard to know which way the market will go because the parameters are numerous and the current situation is rather volatile. In spite of everything, this fall does not have to be disastrous. On the contrary, for various investors, this is the perfect time to buy Bitcoin and consolidate their investments.
Crypto-assets are a risky investment.
Altcoins are slowly starting to recover
Like Bitcoin, Altcoins have fallen sharply and for the most part lost 20% of their value in less than a week. In spite of everything, after BTC stabilizes in the $ 20,000 range, the latter starts to rise slightly and get in the lock.
So ETH is trading around $ 1,100 and was able to keep its resistance at $ 1,000. The same goes for BNB trading at about $ 225, ADA at $ 0.5 and XRP at $ 0.3. Recover some crypto even more 10% of its value before this great fall. They include Solana and Tron.
Tron almost gets his original price back
Altcoins are starting to recover, but of course depending on the value of BTC. If the latter should fall below the $ 20,000 mark, it is a safe bet that the Altcoins will continue to fall enormously.
Despite everything, the price of Tron (TRX) recovered strongly, as the organization behind 2.5 billion tokens had to withdraw TRX signals from Binance in order to hold the USDD peg.
The crypto industry has always been known to be extremely volatile. In the current situation, this is an aspect that should not be ignored. It is therefore necessary to be mindful of the various factors that can have both positive and negative effects on cryptocurrencies.