Bitcoin (BTC) price is currently trading below the $20,000 mark, reaching a low of $19,147 on Saturday, according to statistics from Coingecko.
With the entire cryptocurrency market still battered, the price of BTC dropped below its all-time high of $20,000 in 2017, and the market as a whole continues to suffer huge losses. At the time, reaching $19,500 was referred to as a “boom” linked to possible US regulation of stablecoins.
The BTC/USD pair fell below $20,000 for the first time since December 2020, and reached $19,065 at press time, according to TradingView data.
Since November, the largest cryptocurrency has lost more than 70 percent of its value.
The effect of Bitcoin Drop on market sentiment
Bitcoin could make history this week by closing below the 200-week moving average, which is rare. This phenomenon has only been observed five times in the past. Recent calculations put Bitcoin’s 200-week moving average at around $21,700.
All cryptocurrencies are currently in the red as a result of the market-wide economic downturn. At the time of writing, Bitcoin’s market cap has fallen further below the $1 trillion threshold, at $885 million.
With the bitcoin price continuing to drop, many market watchers have expressed concerns that sentiment will continue to decline as well.
BTC total market cap at $368 billion on the weekend chart | Source: TradingView.com
With nervousness rising after the Federal Reserve’s statement on inflation expectations, the cryptocurrency markets suffered the brunt of a massive sell-off that began with last week’s shocking Consumer Price Index (CPI) data.
Next bottom at $15,500?
Traders are now anticipating that the next Bitcoin drop could occur at $15,500. BTC’s next bottom could be around $19,000 or $15,500, according to crypto trader Rekt Capital, based on the coin’s historical stats on weekly moving averages.
The failure of two major cryptocurrency projects, Terra Luna and Celsius, contributed to the collapse of Bitcoin. Both were intended to be important means of enhancing the stability of digital money, but they have undermined confidence in the technology.
Meanwhile, Digital Currency Group CEO Barry Silbert, CEO of Global Macro Investor, Raul Pal, investor Scott Melker, and others have indicated that they are buying dip (Bitcoin).
By announcing in a recent tweet that he is buying Bitcoin, Silbert somehow alleviated the paranoia of cryptocurrency speculators.
The crypto tycoon echoed the sentiments of Michael Saylor, CEO of MicroStrategy, who recently increased his optimism despite dealing with huge losses.
Featured image from Forbes, chart from TradingView.com