Bitcoin starts the week with a slight drop in price after the steep sell-off last week. The world’s largest cryptocurrency dropped 0.31 per cent in the last 24 hours to $35,000 on January 24, according to CoinMarketCap. Over $1.5 billion Bitcoin trading positions were liquidated over the weekend, according to report. This was the worst weekly performance of world’s largest cryptocurrency in nearly eight months.
Bitcoin price slumped over 17 per cent in last one week. Is this going to be the worst week for cryptocurrency investors?
The sooner-than-expected policy rate hike by the US Federal Reseve has fuelled the Bitcoin rally. Investors are keenly awaiting US Federal Reserve meeting scheduled on January 25-26 for Fed’s signal. To handle the rising inflation, the central bank is likely to tighten policy at a much faster pace than thought a month ago to tame persistently high inflation, a poll by Reuters predicted.
Bitcoin Price This Week: Worst Week Ahead?
“After a rally from $41,000 to $44,000 during the start of last week, Bitcoin plummeted to $34,000 levels over the last couple of days with the strengthening of the US dollar. On the daily timeframe, Bitcoin has broken down from the descending channel pattern. A key support is expected at the $30,140 level.
The RSI has reached its lowest in 2 years which indicates that BTC is in the extreme oversold zone. All these factors amount to a certain reversal in the crypto markets," said WazirX trade desk.
Ether price, however, jumped in the last 24 hours. The world’s second largest cryptocurrency price climed 0.36 per cent to $2,432 on January 24, according to CoinMarketCap. On Ether price, WazirX trade desk said, “Ethereum slid to $2,300 and other Altcoins followed suit taking a huge beating. Ethereum against
Bitcoin weakened in the last couple of days. The daily trend pattern continues to trade within the ascending channel pattern. Immediate support is expected at 0.0658. The RSI went below 30 for the 1st time since December 2020."
The overall cryptocurrency market capilisation dropped to $1.61 trillion in the last 24 hours. The total crypto market volume stood at $82.88 billion over the last 24 hours, down by 35.49 per cent. The total volume in DeFi was $12.13 billion, 14.64 per cent of the total crypto market 24-hour volume, while publishing the article. The volume of all stable coins is now $65.99B, which is 79.61 per cent of the total crypto market 24-hour volume, according to CoinMarketCap.
On crypto tumble, CoinDCX research team said, “A bloodbath of liquidations across exchanges over the past few days as crypto suffered a major drawdown. While there was some respite, with temporal recovery in prices, prices remain depressed, barely making up the lost ground. With macro-related challenges continuing to be a major overhang, it remains to be seen if we are truly out of the woods. It appears that we may have just entered a cyclical bear market, with high probability for us to go lower or at least be range-bound over the next few months."