New Delhi: In a sudden move, Bitcoin dropped sharply on Friday, touching its 3-week low. The largest digital token lost more than 8 per cent to slip below the key psychological level of $22,000.
The exact reason for this sudden fall could not be ascertained immediately. But on a technical basis, the strength of bulls is apparently waning, said analysts.
According to markets experts, the traders were digesting the US FOMC minutes which hinted that bankers are unlikely to slow down the path for rate hikes. The policymakers discussed the necessity of increasing interest rates more in order to tame inflation.
The week started with a rise in prices of Bitcoin to $25,200 but failed to sustain momentum, said Coin DCX Research Desk.
The total market capitalization of Bitcoin has dropped to $415.62 billion with its volume jumping 20 per cent as the Bitcoins worth $31.75 billion exchanged hands in the last 24 hours, the coinmarketcap data suggested.
Reading technical charts, Vikram Subburaj, CEO of Giottus Crypto Platform said after forming a series of higher highs and charting an upward path through August, BTC is back to retracing its gains.
Source: Coinmarketcap.com
“After facing steep resistance at the $25,000, BTC underwent correction and slipped below the ascending trendline support, which has flipped into its immediate resistance,” he added.
On the technical front, RSI stands at a neutral 51, and it still needs to go above its 100-day moving average. He mentions $23,100 and $22,642 as major support level. On the upside, $23,600, $24,000 and $24,608 are key levels of resistance.
Some experts see a rangebound movement in Bitcoin. They believe that it is likely to retest its recent levels of resistance but sustainability continues to remain under skepticism.
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