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Bitcoin May Retest $20,000 Zone Before It Drops To $18,000 Level

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Fear has gripped investors and traders alike in light of the recent adverse market action. Bitcoin, the most well-known cryptocurrency, has suffered the highest levels of selling pressure since the crisis in June and July.

With a high of $22,400 on September 13 and a low of $18,790 today, Bitcoin has fallen by nearly 8%. The price has dropped by a stunning 13.31 percent.

This, too, can be explained by the unfavorable economic developments in the United States, as have the recent price fluctuations. As of this writing, the latest sell-off has not lost any of its steam.

Price information from the last few days places Bitcoin between $19,344 and $18,346. Financial market participants should not place any stock in these figures.

Source: TradingView.com

Bitcoin Needs To Crawl Back Up

Bitcoin’s attempt at a comeback resulted in the formation of a double triangle, which is harmonically related to the XABCD pattern.

This pattern may point to a reversal in which buyers can get in at a discount and sellers can make a profit. However, this was not the situation.

Bitcoin may retest the $20,000 crucial territory before if retreats to the $18,000 level.

BTC is selling at a significant discount to the 78.60 Fib level right now. Being so far away from the important psychological threshold of $20,000, this price point may hinder any further rebound.

Investor confidence can only continue to rise with the aforementioned price in place.

A turnaround can only occur if bulls step in to buy the ongoing decline and turn around the bearish trend.

Bitcoin’s price may be able to retest the $20,500 resistance level if the aforementioned hypothetical event occurs. The 61.80 Fib level is where the aforementioned resistance is located.

However, Bitcoin’s correlation with the broader financial landscape is not advantageous. Bitcoin’s close correlation with the S&P 500 and NASDAQ indexes makes it difficult to restore upward momentum.

BTC Needs All Energy It Can Muster To Normalize

Bitcoin’s rebound is in peril as the larger financial sector experiences a steep decline. In fact, it may not even hit the $20,500 resistance mentioned.

According to the renowned cryptoanalyst @woonomics, Bitcoin has not yet reached rock bottom. As he evaluated the past and present performance of Bitcoin, he discovered that only 52 percent of all coins are underwater.

Bitcoin’s previous bottoms were 61 percent, 67 percent, and 57 percent. The data he gave indicates that if Bitcoin were to reach rock bottom once more, it would not be at $18,000.

For Bitcoin to emerge from this predicament, the larger financial sector must rebound from the current collapse in order to restore investor and trader confidence.

As of this writing, the Stoch RSI values are converging, which may provide a modest boost to the price.

However, with present market dynamics following a strong downward trend, recovery is unlikely.

Bitcoin May Retest 20000 Zone Before It Drops To 18000

BTC total market cap at $359 billion on the daily chart | Source: TradingView.com

Featured image Pixabay, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).

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CryptoPunks NFT 2924 Sold for 3,300 ETH ($4.45 Million)

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Cryptopunks Nft 2924 Sold For 3,300 Eth ($4.45 Million)
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  • NFT hoarder “seedphrase” sold the CryptoPunk NFT. 
  • To date, punk #5822 has fetched the highest price for a CryptoPunk.

A million dollars was a common price tag for NFTs during the recent craze. It seemed that the brakes had been put to the market, since recent circumstances had remained turbulent. Despite this, one user paid 3300 ETH for a CryptoPunks NFT.

The latest shocking event is the $4.45 million sale of CryptoPunks 2924. It’s worth noting that this is one of NFT’s biggest-ever deals. NFT hoarder “seedphrase” parted with the CryptoPunk NFT. According to the NFT’s blockchain transaction history, it was last traded in November of 2020 for 150 ETH [$71,403 at the time].

Despite Sluggish NFT Market

To date, punk #5822 has fetched the highest price for a CryptoPunk. In February of this year, Deepak Thapliyal, CEO of Chain, paid almost $23 million for the alien-style punk. The price tag was far more than that of the next highest-earning punk by a wide margin. The deal almost broke the record for the biggest selling NFT ever, falling short by a few million.

Over the previous 24 hours, sales of CryptoPunk have increased by almost 348%. Therefore, at the time of publication, it was the best-selling compilation overall. Next to them was the Bored Ape Yacht Club, and then came the Mutant Ape Yacht Club. Approximately 13% and 52% daily sales increases were seen for the aforementioned collections.

The NFT market is still in its downturn phase, notwithstanding the sales recovery seen over the last day. Bloomberg reported data from Dune Analytics showing that, compared to January of this year, NFT trading volumes had dropped by 97%.

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Chainlink and SWIFT Collaborate on a Cross-Chain Protocol

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Chainlink And Swift Collaborate On A Cross-Chain Protocol
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