Selling pressure in the crypto market has resumed as the broader cryptocurrency market cap dips below $1 trillion. Earlier today, the world’s largest cryptocurrency Bitcoin hit a week-long low and is currently trading near $21,100 levels.
Bitcoin is again coming under selling pressure as BTC failed to provide a weekly close above its 200 WMA, failing to convert resistance into a support level.
This recent pullback has put a dent in Bitcoin’s ongoing rebound, raising the possibility that BTC price could drop below $20,000 again. Speaking to Bloomberg TV, Katie Stockton, co-founder of Fairlead Strategies, said:
“We’ve had some stabilization over the past few weeks and that gave some people confidence that maybe a bottom was being put in place. We are not so convinced.”
Global macros to influence market movements
All eyes are currently on global macros and the announcement of the Fed rate hike this week. According to industry experts, the Fed is likely to announce a 75 basis point rate hike this week. However, with inflation figures coming in higher than expected in June, there is a good chance of an increase of 100 basis points.
On the other hand, there is currently a growing regulatory oversight in the crypto space. The US SEC has stepped up measures following the crypto market crash and bankruptcies filed by some of the largest crypto lenders. The US SEC is also reportedly investigating crypto exchange Coinbase over their alleged list of security tokens.
Under these circumstances, the cryptocurrency market is likely to remain volatile. Popular crypto market analyst Rekt Capital explains:
“After a strong week last week, #crypto market seems poised for a small BTC pullback, $ETH and many Altcoins appear to be positioned for healthy dips that could act as major retests of past resistances in new supports.”
For Bitcoin, $20,000 remains a crucial support level as of now.
Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
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