Bitcoin price drops 6 percent on profit booking; here's why

53
3
Bitcoin price drops 6 percent on profit booking; here's why

On Wednesday, the price of digital currency was trading sideways on the back of profit booking after a decent upside in the last few days. The mixed move in the other riskier assets kept the crypto traders hooked to the edges ahead of the key inflation data scheduled this week.

The largest criptome was holding $22,500 comfortably, but it breached $23,000 level. It lost 6 percent of its value as it fell below the $1,600 mark.

According to Edul Patel, CEO and Co-founder of Mudrex, cryptocurrencies have seen a slight decrease in the past 24 hours as the markets prepare for the release of US GDP figures on Thursday and consumer sentiment data on Friday.

The current price is $22,500, with support at $22,450 and resistance at $22,600. The price of ether has slowed, trading at $1,500. He said a break above the $1,600 level could boost bullish sentiment.

After recent firm gains, the topcryptocurrencies were going to be slashed, as well as big cuts on Wednesday. Avalanche and Solana fell 9 per cent each, while Shiba Inu and Polkadot fell 8 per cent each. The dogs and the cardano shed 9 per cent each.

The global criptocurrency market cap was trading lower at $1.02 trillion and plunged about 4 per cent in the last 24 hours. The total trading volumes were flat, up a per cent, close to $56.94 billion.

The bullish trend in recent days incryptocurrencies is due to institutional investors increasing their holdings in anticipation of another bull run and the falling value of the US dollar supporting the price of the coin, said Sathvik Vishwanath, Co-founder of Unocoin.

Short-term and long-term investors are benefitting from the recent price increase. He said that the rising number of COVID 19 cases in China and Gemini downsizing by laying off 10 per cent of their workforce may have an impact on the criptocurrency market in the future.

Major updates from the world.

Token holders from the Sushi community have voted on two separate proposals that aim to strengthen the DeFi service's treasury and long-term staying power.

Porsche has halted its mint of its first non-fungible NFT collection after receiving negative feedback from its community.

Fractal, a platform for game-related non-fungible token NFT developed by Twitch co-founder Justin Kan, is expanding its reach into the Polygon network to increase accessibility.

Tech View by Giottus Crypto Platform

It's the leading asset that allows peer-to- peer transactions without the need for a central authority. The total supply of BTC is capped at 21 million and each of them has been trading significantly higher this month. After briefly breaching $23,000, BTC is trading slightly above $22,500 today. It has gone up by nearly 40% since the beginning of the year.

BTC has been consolidating in the last three days after claiming a 5 month high on Saturday. The bulls seem to have an upper hand for now, with the short-term support at $22,500 and the FIB support at $21,500. If BTC manages to claim the resistance at $23,133, the key mark of $25,000 should be its next target.

The BTC's 50 and 200 day moving averages at $18,000 and $19,600 are far below its current price, indicating that it might be overbought. BTC currently tests a support-resistance flip at $22,500, and every attempt at a correction has been thwarted.