Bitcoin price failed to break above the $43,500 resistance area and fell below the $42,000 mark before changing course.
Multiple charts show that the world’s most valuable cryptocurrency is now showing bearish characteristics and remains vulnerable to a move towards $40,500.
Bitcoin fell below $42,000 for the first time since March 22, and is back in the range it has traded in this year, due to mounting concerns about rising interest rates.
Bitcoin Backpedals for the sixth day in a row
The most popular cryptocurrency fell to $41,818 on Monday morning in Asia, falling for the sixth consecutive day.
Since late March, when it peaked just above $48,000, bitcoin – and other tokens – have been dragged lower due to concerns about restrictive monetary policy.
The cryptocurrency market was trading sideways on Monday. Bitcoin and Ethereum both fell in the early hours, while altcoins saw a strong decline.
The intensification of global turmoil as a result of the Russian invasion of Ukraine, along with economic uncertainty, sent markets into a crash.
Other major risks to the digital sector include price hikes and interest rate hikes.
The rise is declining after the Miami conference
The excitement generated by last week’s Bitcoin 2022 conference in Miami wasn’t enough to stop this trend.
Anthony Trenchev, managing partner at crypto lender Nexo, noted in an emailed statement:
“Now that the Bitcoin 2022-related sugar rush has passed, Tuesday’s (likely) poor US CPI is a reminder that the central bank is stuck between a rock and a hard place when it comes to tackling uncontrolled inflation without crashing the economy.”
BTC total market cap at $785.54 billion on the weekend chart | Source: TradingView.com
Bitcoin spent the majority of the year trading around $35,000 to $45,000. Last month’s rally above $48,000 briefly reversed the coin’s year-to-date losses, but BTC faced resistance at its 200-day moving average.
Suggest reading | What’s next for Bitcoin as prices struggle to recover $43,000?
BTC Market Capitalization Down
The global cryptocurrency market cap has fallen to $1.93 trillion, down 3% in the last 24 hours. However, the total volume of cryptocurrency trading increased by more than 15% to $63.91 billion.
Tighter monetary policy expectations have affected demand for riskier assets such as cryptocurrencies and technology stocks, which are increasingly moving by leaps and bounds.
Other popular cryptocurrencies also fell on Monday, with Polkadot down 8.7 percent and Ether down 4.6 percent.
Meanwhile, as Bitcoin grows in maturity and usage, its price becomes increasingly tied to the pricing of traditional assets such as stocks.
This rising correlation indicates that any occurrence that causes price drops in the traditional markets will certainly result in similar or greater price drops in Bitcoin.
Featured image from Medium, chart from TradingView.com