Bitcoin price crash captures financial markets attention
Bitcoin incurred its steepest one-day price drop since March 2020 this week as a series of bearish news catalysts caused the broader cryptocurrency market to sink deeply into negative terrority. The BTCUSD pair crashed towards the $30,000 level, marking its lowest trading level since February this year, with the top coin losing around 30 percent in value at one stage. The price of Bitcoin fell on bearish Chinese regulatory news, however, major outages on the Coinbase and Binance exchanges caused the market to plunge further. Bitcoin eventually recovered back above its 200-day moving average, as bulls attempted to take back control of the BTCUSD pair as the market showed tentative signs of price stabilization.
- The BTCUSD pair is only bearish while trading below the $44,000 level, key support is found at the $36,000 and $30,000 levels.
- The BTCUSD pair only bullish while trading above the $44,000 level, buyers may test towards the $50,000 and $55,000 resistance levels.
Technology stocks came under heavy selling pressure this week over fears about the cryptocurrency market crash, which saw $800 billion of market value wiped-off digital assets. Electric carmaker Tesla dropped by nearly 10 percent on the market open as Bitcoin traded heavily into double-digit native territory. Tesla’s share price remains vulnerable during Bitcoin price drops as the company has significant holdings of the top digital asset. Microstrategy also incurred heavy losses due to its massive Bitcoin holdings, while the share price of the newly listed cryptocurrency exchange, Coinbase, fell to its lowest level since its April listing on the Nasdaq.
- USDJPY pair is only bullish while trading above the 108.45 level, key resistance is found at the 109.40 and 110.00 levels.
- USDJPY is only bearish while trading below the 108.45 level, key support is located at the 108.00 and 107.50 levels.
Altcoins suffered heavy losses this week, as the extended price decline in the valur of Bitcoin, and outages in the world’s two largest cryptocurrency exchanges caused traders to become nervous towards crypto. Top coins such as Ethereum and Litecoin eroded upto 50 percent of their respective market values at one point, as altcoins are often known to be more volatile than Bitcoin. Ethereum briefly dipped below the $2,000 level as Bitcoin crashed, just weeks after the second-largest cryptocurrency traded close to $4,400 earlier this month. Litecoin, onc of the top altcoins, and closely linked to the price movements of Bitcoin, slumped towards $150.00 after previously trading as high as $400.00 in May.
- The LTCUSD pair is only bearish while trading below the $220.00 level, key support is found at the $175.00 and $150.00 levels.
- The LTCUSD pair is only bullish while trading above the $220.00 level, buyers may test towards the $250.00 and $280.00 resistance levels.
The British pound incurred bouts of markets volatility against the US dollar and euro currency, following the release of a number of important United Kingdom macroeconomic data points. Sterling started the week on strong footing as UK housing data improved, and the United Kingdom unemployment rate dropped to 4.8 percent. The closely watched UK CPI inflation number came in stronger than expected, at 1.2 percent month-on-month, however, market were slow to react. The GBPUSD pair started to gain upside momentum towards the end of the week as UK retail sales roared higher last month, with a 9.2 percent increase.
- The GBPUSD pair is only bearish while trading below the 1.4000 level, key support is found at the 1.3900 and 1.3800 levels.
- If the GBPUSD pair trades above the 1.4000 level, buyers may test towards the 1.4250 and 1.4300 resistance levels.