Bitcoin Price Drops for a Fourth Day; Falls Back Below $20,000 Level
Bitcoin fell back below $20,000 on Tuesday after enjoying its strongest run in more than three months last week, as a surge in the greenback rippled through global markets.
The largest cryptocurrency dropped as much as 4.2% to $19,546, declining for a fourth straight session. It hit $22,472 on Friday as risk appetite returned to broader assets. Second-largest Ether slid as much as 7.4% to $1,053. The MVIS CryptoCompare Digital Assets 100 index dropped 4.2% at one point.
“Expect apathetic back-end vol and basis flows in another summer trading week with CPI likely to be the main event on July 13,” Genesis’s Noelle Acheson and Gordon Grant said in a note Monday. “Notwithstanding a modicum of fireworks around last Friday’s weekly options expiry that saw Bitcoin blow through $22,000 and touch the 200-week moving average, with Ether pushing toward $1,300 in sympathy, the weekend session saw a resumption of choppy, downwardly oriented price action that has characterized recent months.”
The dollar jumped on Monday ahead of the CPI, which could offer insight into the Federal Reserve’s potential rate-hike path. Bitcoin and other cryptocurrencies have struggled as the central bank works to combat high inflation readings, and have tended to trade along with risk assets for the past couple of years.
Bitcoin has been trading range-bound since its steep drop in June, hovering just around $19,500, its 2017 peak. If the coin breaks below this level, $16,000 to $17,000 may act as the next level of support, the range Bitcoin saw as resistance during the relief rally in early 2018. Or it could move toward $14,000, the coin’s peak in 2019, according to Arcane Research.
If, however, Bitcoin breaks higher, $28,000 may serve as the nearest
Read more on tech.hindustantimes.com
