Bitcoin was under renewed selling pressure on Tuesday, pulling the world's number 1 cryptocurrency to lows that have not been seen since the end of May. However, at least one technical analyst says that the slump in Bitcoin prices will not represent a significant slump in its uptrend until the asset sees weaker closing prices today and tomorrow.
"The short-term momentum has deteriorated, but not to the extent that we have a 'sell' signal (in the MACD newspaper)," said Katie Stockton, technical analyst and founder of Fairlead Strategies, referring to MarketWatch on the divergence of moving average convergence, a measure of the dynamics of an asset.
"A closing price above the 20-day moving average would be a short-term bullish development," said the analyst.
Last review, bitcoin
was trading at $ 32,850.88 on CoinDesk, down over 10%. The cryptocurrency has risen by over 13% in the year to date, but has been steadily losing ground since the beginning of the year. According to Dow Jones Market Data, prices were roughly at their lowest level since May 23. Bitcoin is down nearly 50% from its mid-April high of $ 64,829.14.
CoinDesk analyst and author Damanick Dantes said the resistance for Bitcoin is around $ 40,000, with support at around $ 30,000.
Bitcoin has been under pressure for weeks, but its decline has exacerbated in recent measures after US authorities said they were getting back millions of dollars in Bitcoin paid to the hackers who launched a cyberattack on the Colonial Pipeline last month had. a large fuel pipeline on the east coast.
The general decline in the price of Bitcoin has weighed on the broader crypto complex.
The popular virtual meme currency, developed in 2013, lost over 12% and changed hands at 32.5 cents. Backed mostly by individual traders on sites like Reddit and Discord, the cryptocurrency is down 56% from its high in early May. Of course, Dogecoin has risen almost 7,000% over the year to date.
Number 2 of the most valuable cryptos in the world, Ether
ran on the Ethereum blockchain, trading 12% lower, at $ 2,489.89. Ether is far from its mid-May high of $ 4,382.73. Ether is up over 200% so far in 2021, despite its slump.
For comparison: the Dow Jones Industrial Average
and the S&P 500 index
both are close to 13% so far in 2021, while the Nasdaq Composite
has posted an increase of 8.5% over the year to date, FactSet data shows.
Still, at $ 1.495 trillion, the total market value of crypto is about 40% below its mid-May peak, according to CoinMarketCap.com.