Bitcoin still below $ 47,000 – sentiment remains cracked
Bitcoin cryptocurrency is still below the $ 47,000 mark a day after its spectacular crash. Second and third tier currencies such as Ether (ETH) are also hit by the downside pressure. Ether, the second most important currency in terms of market size, has lost around 16 percent to currently less than $ 3,200 per unit.
The mood is and remains cracked. It could take investors a while to recover from yesterday’s shock. The Bitcoin experiment in El Salvador failed in the first attempt. It is quite possible that further details will now be changed. For example, companies are obliged to accept Bitcoin as a means of payment as long as they are technically able to do so.
The introduction of Bitcoin in the Central American state has turned out to be an own goal for the industry and thus a nightmare for investors. In addition to the financial instability of the cryptocurrency, the introduction of Bitcoin could fuel illegal transactions and increase regulatory concerns in this context. Investors fear that yesterday’s supervisory authorities around the globe have become aware of the fact that they tighten their regulatory belts and that Bitcoin and Co are taking their breath away.
Do you already know the top 10 cryptocurrencies to trade in 2021?
Bitcoin price is again below the important 200-day average
The 200-day average, which is decisive for long-term investors, broke the Bitcoin price down again on Wednesday. From a technical chart perspective, the stock market lights are back on red. Further losses could be forced in this context. A quick conquest of said technical brand remains possible.
It could go on for Bitcoin, Ether and Co.
From a short-term perspective, losses could initially accelerate further as the day progresses. A renewed approach to the most recent low of around 43,000 dollars would be conceivable for Bitcoin investors. On the other hand, the supposedly low price levels could invite bargain hunters to re-enter the market. However, investors should still avoid reaching into the falling knife as much as possible. A bottoming out around the $ 42,000 mark remains to be seen.
In the case of ether, a slide to the mental mark of $ 3,000 per unit would be conceivable.
How to trade cryptocurrencies with IG yourself
Do you want to trade cryptocurrencies yourself? Open a live or demo account with IG and buy (long) or sell (short) Bitcoin using derivatives such as CFDs in a few simple steps:
- Create an IG trading account or log into your existing account.
- Enter “Bitcoin” in the search bar and select it.
- Choose your position size.
- Click Buy or Sell Order Ticket.
- Confirm the order.