Bitcoin Breaks Below $20K
• Bitcoin (BTC) has dropped below the crucial $20,000 line for the first time since mid-January.
• The coin is currently trading at $19,650, having lost about 9.2% in 24 hours.
• The crypto market has dropped this week due to technical analysis depicting a strong sell and recent negativity surrounding crypto assets.
Plunges Over Past Week
Over the past week, Bitcoin was trading at $22,370 seven days ago and reached a 7-day high of $22,600 on March 5th. Since then it has been in the red zone with significant price plunges between March 9th and 10th when it dropped from $21.7k to $19.9k in less than a day. In the last 24 hours the coin’s 24-hour high was just about $21,790 but failed to recover since then leading to its current price of 19,650 USDT per coin.
The market charts indicate that BTC has been trading in the red zone for 24 hours and technical analysis depicts a strong sell that may run up to the next support level of 18k USDT per coin if broken down further as indicated by Moving Average Convergence/Divergence (MACD) indicator shows a sell bias and Relative Strength Index (RSI) which is at 26.94 levels for BTC/USD daily chart .
Reasons Behind Price Drop
The current price plunge can be attributed to various reasons starting with implosion of Silvergate Bank which traditionally favored cryptos as well as inflationary pressure from key personnel in regulatory space such as Jerome Powell mentioning possibility of raising interest rates higher and CEO of Bank of America predicting minor recession with interest rates remaining high till 2024 .
Bitcoin has continued to suffer from drops over past few weeks failing attempts at recovery resulting in its current price being below 20k USTD per coin while showing signs that it may dip further if next support level is broken down indicating uncertain future ahead for this cryptocurrency .