After Bitcoin had reached its highest level in almost four months at $ 52,854 early Tuesday morning, it came under heavy pressure in the afternoon and briefly slipped below the $ 44,000 mark. While the digital reserve currency is now working on stabilization, the rest of the crypto market is also recording even heavier losses in some cases.
The Bitcoin price buckled sharply within a few minutes on Tuesday afternoon and briefly dropped to $ 43,285 around 5 p.m. – a discount of around 18 percent on the multi-month high reached a few hours earlier. Although he was able to stop the sharp decline at this level for the time being and make up some of the losses again. On a 24-hour perspective, however, there is still a minus of almost nine percent to around $ 47,000.
In addition, brands that had only recently been recaptured, such as the psychologically and technically important 50,000 hurdle and the horizontal support at around 48,500 dollars, were torn. On the positive side, however, the 200-day line at $ 46,017 and the horizontal support in the area of $ 45,000 were not sustainably fallen below.
It would be important that it stays that way for the next few hours until the cops take over the helm again. The chart image would brighten further if a swift rebound above the $ 50,000 mark was achieved.
Lots of altcoins in the wake – Solana is doing well
Compared to the overall market, Bitcoin is still doing comparatively well. Some altcoins have lost more than 20 percent at times. The overall market loses around eleven percent on a 24-hour basis. In the top 10 by Market Cap, only the stablecoins Tether and USD Coin recorded slight gains and the high-flyer Solana significant price gains on Tuesday evening.
Buy the rumor, sell the news
As always, there is eager speculation about the reasons for the severe setback on the crypto market. A connection with the introduction of a new law in El Salvador that gives Bitcoin the status of legal tender is often mentioned. While many Bitcoin fans celebrate this as a milestone in Bitcoin adoption, there are also voices in the industry warning of possible risks to the digital currency. There are also media reports about problems with the launch of the state Bitcoin payment app “Chivo”.
According to information from the industry portal cointelegraph.com At first it is probably mainly investors with large Bitcoin stocks – so-called whales – who used the local high in the run-up to the change in the law on Tuesday to cash in. True to the motto: “Buy the rumor, sell the news.”
After the sometimes significant price gains in many crypto currencies in the last few weeks and months, numerous other investors have also been tempted to take profits.
Note on conflict of interests:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
Author Nikolas Kessler has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
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